Several months ago, I was cruising the net when a pop-up ADVERTISEMENT shouted out at me on the screen,
"Congratulations! You've just won a Plasma TV"
In order to collect my prize, I simply needed to complete a survey!
After I clicked on the link, another aspect of the "contest" was revealed. In order to qualify for the Plasma TV, I was required to accept two free offers from a list of sponsors.
Like a fool, I clicked on. I mean, what could be the harm?
The choices were tantalizing...4 free issues of a Woman's Health Magazine, Life Insurance (provided I met the criteria that I be free of about thirty known afflictions in the common realm of diseases), secured credit card opportunities galore, free Elvis ring tones, you name it.
After I selected two of the tempting offerings, about fifty new pop-ups ads sprang to life on the screen; it appeared that now there would be an endless round of maneuverings from one level of the contest, to the next.
I gave up in frustration, just short of confirmation that my Plasma TV was on the way by overnight Federal Express, no doubt.
When I read in the Los Angeles Times today that "Value Click, Inc." - the disreputable company responsible for the scam on the Internet - got their proverbial t** caught in the wringer by the FTC, I jumped for joy.
Under the 2003 Can-Spam Act - which forbids deceptive e-mails and unsolicited commercial plugs that are misleading, not properly identified, and/or fraudulent in nature - the FTC summarily fined Value Click, Inc. 2.9 million dollars for breaking the law.
"Gotcha, a**holes!"
According to the news report, "...in most cases, it was impossible for the consumer to qualify...defendants' promised free merchandise without spending money," the FTC accused in their pleadings.
ValueClick Inc. is one of the largest Web advertising networks.
Merchants have criticized ValueClick, Inc. in the past for placing ads through affiliates that used security holes in consumer computers to install ad-spewing software. In that scenario (which I got scammed by) pop-up ads, banner ads, and e-mails touted free laptops, TV's and Sony PlayStation consoles, ad nauseam.
In respect to actual transactions on the world-wide-web, The Federal Trade Commission also accused ValueClick, Inc. and its two subsidiaries - Hi-Speed Media and E-Babylon - of falsely assuring customers that their personal financial data were secure. In fact, some credit card numbers and three digit verification codes weren't encrypted at all. Databases where data was stored was also not adequately protected, could be easily penetrated by skilled attackers.
In spite of the fact I never completed the dizzying contest process, over the next two weeks my e-mail box was inundated with about 300 pieces of spam a day. In fact, I was forced to abandon that e-mail service and open up a new account elsewhere, to elude the onslaught of the questionable offers.
Likewise, I was also forced to go through the time-consuming process of notifying all my clients, friends, and family members of the change of e-mail address, as well.
The FTC finding has rocked Value Click,Inc., a publicly-traded company based in Westlake, California. Yesterday, for instance, shares dropped over 7% on the market.
Analysts have also noted that the FTC action may put a damper on any Value Click acquisition attempts by Google, Inc., Microsoft in the near future, until the probe blows over.
Execs at ValueClick, Inc. skirted the issue of "wrongdoing" in a recent press conference, and alleged that the dispute involved "past practices".
Did they think if they clicked their heels twice, the scandal would go away?
