The agreement provides restitution to Washington residents who purchased the products and request refunds. The Attorney General's Office estimates than more than a hundred consumers may be eligible for reimbursement; some have already received refunds.
"The Attorney General's Office will vigorously pursue Internet Age marketers who attempt to deceive or mislead consumers," McKenna said, "but companies also have an important role to play in ensuring a fair marketplace.
"Internet businesses must do a better job of self-regulating and thoroughly evaluate their advertising and marketing methods to ensure they comply with the law. They need to fully disclose all terms and fees for their products and services and should not intentionally manipulate consumers' fears about spyware and other online threats in order to boost sales," he said.
In addition to restitution, the defendants must send an e-mail to prior Washington customers who purchased Spyware Slayer or music download software during the past two years via any of its Web sites including 247downloads.com, freedownloadclub.com, downloadsforever.com, freepcscan.com and mp3sunlimited.com. Consumers who have not already received refunds may request reimbursement.
The settlement does not include any specific findings of wrongdoing. The state's complaint filed simultaneously alleged a variety of violations of the state Computer Spyware Act and Consumer Protection Act.
According to the Attorney General Office's suit, High Falls promoted Spyware Slayer software on its Web site, freepcscan.com. The site warned consumers that there is a "90% chance" their computers are infected with spyware and urged them to perform a "free scan" of their computer.
If a consumer tried to close out of the site, a pop-up ad appeared that stated: "Warning -- We have detected a 99% chance that you are infected. If you leave now, damage could be done by harmful worms, viruses, adware, spyware, malware or hacker code."
If a consumer elected to have the free scan performed, a software program downloaded onto the user's computer.
"Our investigation found that this so-called 'free scan' always detected spyware labeled as 'extreme risk' on a user's computer," said Assistant Attorney General Katherine Tassi, who spearheaded the state's case. "The scan also identified harmless registry keys as spyware. In order to remove this falsely detected spyware, users are advised to purchase the full version of Spyware Slayer for $29.95."
McKenna said it is illegal under Washington's Computer Spyware Act to induce consumers to download software under the guise that the program is needed to protect themselves and their computers.
