The Federal Trade Commission has begun proceedings against D Squared Solutions LLC (D Squared), a US-based software company, for engaging in unfair trade practices.   The FTC alleges that D Squared created a computer virus that exploited Microsoft's MSN Messenger, an instant messaging program, and then sold a program that would remove the virus.   The complaint was filed in a Maryland US District Court on October 30, 2003, and a temporary restraining order was granted that same day. The FTC sought an immediate restraining order and other ancillary damages. The D Squared virus displayed persistent and disruptive messages on the user's screen any time the user was connected to the internet.   The messages encouraged the user to go to D Squared's web site and purchase their software, displaying messages like: "Did you know that there is a one-click easy way to stop these pop-ups FOREVER?   For Free information, please visit http://www.defeatmessenger.com". The defendant was charging US $25 - $30 for its software.   However, no software is actually required, although most consumers would not have the technological know-how to disable the pop-ups on their own.   Both Microsoft and the FTC have posted instructions for blocking the pop-up, which are relatively straightforward.   AOL has disabled MSN Messenger for all its 15 million subscribers remotely to save them the hassle. Further Links: http://www.ftc.gov/opa/2003/11/dsquared.htm; and http://news.morningstar.com/news/DJ/M11/D06/1068142868051.html. Summary by:   James Kosa

E-TIPS® ISSUE

03 11 20

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