Zango (company)
Encyclopedia
Zango, formerly ePIPO, 180solutions and Hotbar, was a software company that provided users access to its partners' videos, games, tools and utilities in exchange for viewing targeted advertising
Targeted advertising
Targeted advertising is a type of advertising whereby advertisements are placed so as to reach consumers based on various traits such as demographics, purchase history, or observed behavior....

 placed on their computers. Zango software is listed as adware
Adware
Adware, or advertising-supported software, is any software package which automatically plays, displays, or downloads advertisements to a computer. These advertisements can be in the form of a pop-up. They may also be in the user interface of the software or on a screen presented to the user during...

 by Symantec
Symantec
Symantec Corporation is the largest maker of security software for computers. The company is headquartered in Mountain View, California, and is a Fortune 500 company and a member of the S&P 500 stock market index.-History:...

. Computer security
Computer security
Computer security is a branch of computer technology known as information security as applied to computers and networks. The objective of computer security includes protection of information and property from theft, corruption, or natural disaster, while allowing the information and property to...

 company McAfee
McAfee
McAfee, Inc. is a computer security company headquartered in Santa Clara, California, USA. It markets software and services to home users, businesses and the public sector. On August 19, 2010, electronics company Intel agreed to purchase McAfee for $7.68 billion...

 said in 2005 "this program may have legitimate uses", but described it as a "potentially unwanted program", and an "adware downloader".

In April 2009 Zango ceased trading after its banks foreclosed.

Hotbar, Seekmo, and ZangoCash, formerly owned by Zango, continue to operate as part of Pinball Corporation.

Content

Zango's consumer website asserted that the company was "committed to creating a content economy built on a foundation of safe and ethical practices by protecting consumer privacy while offering a fulfilling and high-value content experience." Zango content included sports, comedy, dance, erotic videos, online games, and screensavers. Warner Bros.
Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...

 and others had provided content, but WB terminated its business relationship with Zango after concerns were raised that children viewing Warner Bros. content could be exposed to advertisements for pornography
Pornography
Pornography or porn is the explicit portrayal of sexual subject matter for the purposes of sexual arousal and erotic satisfaction.Pornography may use any of a variety of media, ranging from books, magazines, postcards, photos, sculpture, drawing, painting, animation, sound recording, film, video,...

.

Undesirable software behaviors

StopBadware.org lists a number of undesirable behaviors associated with Zango Easy Messenger, including "behaves as spyware
Spyware
Spyware is a type of malware that can be installed on computers, and which collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user, and can be difficult to detect. Typically, spyware is secretly installed on the user's...

", "automatically runs on startup",
"displays pop-up ad
Pop-up ad
Pop-up ads or pop-ups are a form of online advertising on the World Wide Web intended to attract web traffic or capture email addresses. Pop-ups are generally new web browser windows to display advertisements...

vertisements", "installs adware", and "bundled software cannot be closed". The same site states, "We find that Zango Easy Messenger is not badware, although it does engage in behaviors that users should be aware of."

Websense
Websense
Websense is a San Diego-based company specializing in Web security gateway software. It enables clients to block access to chosen categories of websites.-History:Websense was founded by Phil Trubey in 1994...

 has a Zango-related security advisory dated November 2006, stating that "Websense Security Labs has discovered a number of user pages on the MySpace domain which have videos that look like they are from You Tube. The videos have an installer embedded within them for the Zango Cash Toolbar. When users click on the video, they are directed to a copy of the video, which is hosted on a site called 'Yootube.info.' ... the video downloads and attempts to install setup.exe from Zango Cash."

A more detailed analysis of this attack appears in "Zango Practices Violating Zango's Recent Settlement with the FTC": "Zango continues numerous practices likely to confuse, deceive, or otherwise harm typical users as well as practices specifically contrary to Zango's obligations under its November 2006 settlement with the FTC." These include failure to include on-screen disclosure of material terms, widespread in-toolbar ads without labeling and hyperlinks, ads for "bogus sites that attempt to defraud users", and third party installations without disclosure.

Automated analysis by McAfee SiteAdvisor in May 2008 reports "629 red downloads — In our tests, we found downloads on this site that some people consider adware, spyware or other potentially unwanted programs."

1999 to 2001

When founded in 1999, Zango was known as ePIPO. It was one of the first "pay-to-surf" companies, following in the footsteps of AllAdvantage
AllAdvantage
AllAdvantage was an Internet advertising company that positioned itself as the world’s first "infomediary" by paying its users/members a portion of the advertising revenue generated by their online viewing habits...

. This business model paid users a minimal amount to surf the Internet while running an application that showed banner ads. Users could also make money by referring new users.

After enjoying brief success, the pay-to-surf business model declined with the bursting of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...

 in 2001. The company, later known as 180solutions, adjusted their technologies in several ways:
  • To show pop-up ads rather than banner ads.
  • To not have any visible GUI
    Gui
    Gui or guee is a generic term to refer to grilled dishes in Korean cuisine. These most commonly have meat or fish as their primary ingredient, but may in some cases also comprise grilled vegetables or other vegetarian ingredients. The term derives from the verb, "gupda" in Korean, which literally...

    .
  • To be bundled with other potentially valuable applications.

2002 to 2005

From 2002 to 2005, 180solutions' applications (ncase and 180SA (search assistant)) were distributed via various affiliates. While these affiliates were required by the 180solutions contract and by law to obtain the permission of the user prior to software installation, many did not, resulting in millions of illegal non-consensual installs. Many other affiliates notified users only via the end user license agreement, resulting in millions more arguably legal but essentially non-consensual installs.

180solutions' software showed pop-up ads while a user was surfing the Internet. This software was often bundled with free software which the user intentionally installed; since permission to install the 180solutions adware was typically hidden in an EULA, most users were unaware they were installing adware. In some cases 180solutions' software was installed as a standalone install. Using this method, an ActiveX prompt simply asked the user to install the software so that they could receive "comparison shopping advertisements".

180solutions contended that the value of the bundled software or the advertisements made up for the inconvenience of the pop-up ads. The value of this trade-off was contested by critics of the adware business model.

In 2004 Benjamin Edelman, assistant professor at Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...

 and spyware
Spyware
Spyware is a type of malware that can be installed on computers, and which collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user, and can be difficult to detect. Typically, spyware is secretly installed on the user's...

 researcher, analyzed the network behavior of 180solutions applications and claimed they redirected commissions to themselves that were properly due to affiliates, and additionally caused merchants to pay commissions when affected users clicked on merchant sites directly.

During this time, 180solutions' applications were designed to be difficult to uninstall, requiring the user to download an additional uninstall application made by 180solutions or to use an adware removal tool. In 2005 the software uninstall was standardized to use the Windows "Add or Remove Programs" function, making it easy to uninstall.

In 2005, 180solutions implemented a number of initiatives to control the distribution of its software and eliminate non-consensual installs:
  • March: Acquired one of their distribution partners, a Canadian company called CDT (dba LoudCash). This gave them direct visibility into and greater control of many of the formerly "third party" distributors.
  • June: Claimed to have re-notified users on its 20-million-user customer base, and implemented a program that notifies all users within 72 hours of install and re-notifies all users every 90 days thereafter.
  • August: Filed suit against seven individuals alleged to have illegally distributed its software using a botnet
    Botnet
    A botnet is a collection of compromised computers connected to the Internet. Termed "bots," they are generally used for malicious purposes. When a computer becomes compromised, it becomes a part of a botnet...

    .
  • November: Announced an ongoing partnership with the FBI in breaking up a botnet ring in the Netherlands.
  • December: Ended distribution of the 180SearchAssistant and closed LoudCash (a remnant from the CDT acquisition). They claimed that this removed the financial incentive for fraudulent installs, which many critics did not believe.

2006 to 2008

Despite the initiatives of 2005, 180solutions admitted that it was possible for malicious parties to hack their install routines and thus cause fraudulent installs. They claimed that the percentage of fraudulent installs had dropped from over 10% to under 1%. Critics considered that the business model was untenable because fraud against 180solutions which harmed unknowing users via non-consensual installs could never be completely removed.

In early 2008 security researchers at Fortinet
Fortinet
Fortinet is headquartered in Sunnyvale, California and specializes in network security appliances. Fortinet’s flagship product line is sold under the brand name of FortiGate.-Corporate Overview:...

 reported, incorrectly, that the rapidly-spreading Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...

 widget
Web widget
In computing a web widget is a software widget for the web. It's a small application that can be installed and executed within a web page by an end user. They are derived from the idea of code reuse. Other terms used to describe web widgets include: portlet, gadget, badge, module, webjit, capsule,...

 "Secret Crush" was enticing users to download Zango adware by promising to identify a secret admirer. Zango denied any involvement with the widget, and further investigation by an Infoworld senior writer showed that the Fortinet report was incorrect.

On June 16, 2008 the company laid off
Layoff
Layoff , also called redundancy in the UK, is the temporary suspension or permanent termination of employment of an employee or a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow-down occurs...

 68 of its approximately 200 employees; Executive Vice President of Corporate Development York Baur, company co-founder Chief Technology Officer Ken Smith, and company co-founder Chief Information Officer Doug Hanhart also left. Zango said it was narrowing its focus to concentrate on its new product Platrium, a "casual gaming experience" that showed targeted ads, shopping comparisons and search suggestions based on keywords from the user's Internet browsing.

On December 15, 2008 Zango closed their Tel Aviv office, laying off another 50 employees. The Tel Aviv office had been the Hotbar headquarters before Hotbar and 180solutions merged.

Closed April 2009

In a personal bankruptcy filing following a January 2009 $4.6 million judgment in favor of a former employee, Zango's CEO stated that the company was in default to a bank consortium for over $44 million.
On April 20, 2009 industry magazine ComputerWorld
Computerworld
Computerworld is an IT magazine that provides information for senior IT leaders. It is published in many countries around the world under the same or similar names. Its publisher is International Data Group. Computerworld serves the needs of IT management via print and online...

reported that Zango had closed its doors. A spokesman for video search engine company Blinkx
Blinkx
Blinkx is an Internet search engine for video and audio content, headquartered in San Francisco, California and the UK that allows searching and classification of audio files, video clips and streaming media such as Internet television and video on demand...

 said that although Blinkx had purchased some of Zango's technical assets such as servers
Server (computing)
In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...

, Zango was shut down after the consortium foreclosed. About 10% of Zango's assets were sold to Blinkx, in what the Zango CEO characterized as a "fire sale". When asked about employees, a Blinkx spokesman said "As Zango was insolvent, we believe all the employees were laid off."

It was later announced that ZangoCash was to become Pinball Publisher Network, part of the Pinball corporation, though it would still be operating under its own name with no change to its services.

Federal Trade Commission charges and settlement

On January 23, 2006 a public advocacy group filed two official complaints with the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...

. The Center for Democracy and Technology
Center for Democracy and Technology
The Center for Democracy & Technology is a Washington, D.C. based 501 non-profit public-interest group that works to promote an open, innovative and free Internet....

 complaints charged 180solutions with engaging in unfair and deceptive business practices, deliberately duping Internet users into downloading intrusive advertising software.

In 2006 the Federal Trade Commission charged Zango with "Deceptive Failure to Disclose Adware", "Unfair Installation of Adware", and "Unfair Uninstall Practices" in violation of the Federal Trade Commission Act. Since the FTC ruling, security researchers continued to find Zango involved in problematic installs.

In November 2006 Zango settled this complaint via a consent decree
Consent decree
A consent decree is a final, binding judicial decree or judgment memorializing a voluntary agreement between parties to a suit in return for withdrawal of a criminal charge or an end to a civil litigation...

 with the FTC, without formally admitting guilt. In the words of the Federal Trade Commission press release, "Zango, Inc., formerly known as 180solutions, Inc., one of the world’s largest distributors of adware, and two principals have agreed to settle Federal Trade Commission charges that they used unfair and deceptive methods to download adware and obstruct consumers from removing it, in violation of federal law. The settlement bars future downloads of Zango’s adware without consumers’ consent, requires Zango to provide a way for consumers to remove the adware, and requires them to give up $3 million in ill-gotten gains." These restrictions remain in force for twenty years. The agreement also requires respondents Keith Smith and Daniel Todd to notify the FTC of the discontinuance of their current business or employment, or of their affiliation with any new business or employment, for ten years.

In July 2007 Edelman said, "Zango continues numerous practices likely to confuse, deceive, or otherwise harm typical users as well as practices specifically contrary to Zango's obligations under its November 2006 settlement with the FTC."

Other litigation

In September 2005 attorney Shawn Collins filed a class action lawsuit
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...

 against Zango on behalf of three plaintiffs, alleging that Zango deceptively installed spyware on more than 20 million personal computers. The company said its software was voluntarily installed by users who downloaded premium content in exchange for their consent to view advertisements relevant to what they searched for online. During pre-trial discovery
Discovery (law)
In U.S.law, discovery is the pre-trial phase in a lawsuit in which each party, through the law of civil procedure, can obtain evidence from the opposing party by means of discovery devices including requests for answers to interrogatories, requests for production of documents, requests for...

, the parties agreed to a dismissal with prejudice
Prejudice (law)
There are two meanings for "prejudice" in legal proceedings; civil and criminal.-Civil procedure:Within legal civil procedure, prejudice is a loss or injury, and refers specifically to a formal determination against a claimed legal right or cause of action. Thus, in a civil case, dismissal without...

, meaning that the suit cannot be brought again by the same complainants. Each side agreed to pay its own fees and expenses.

In May 2007 Zango filed a lawsuit against PC Tools alleging tortious interference
Tortious interference
Tortious interference, also known as intentional interference with contractual relations, in the common law of tort, occurs when a person intentionally damages the plaintiff's contractual or other business relationships...

 with its business and trade libel, because the PC Tools product Spyware Doctor
Spyware Doctor
Spyware Doctor is a spyware removal product for Microsoft Windows developed by PC Tools.-Features:Spyware Doctor is a program which scans a computer for spyware, examining files on the hard drive, objects in memory, the Windows registry, and cookies, and then attempts to quarantine or remove...

 at that time classified Zango software as malicious and removed it without informing users. Zango dropped the suit after the judge ruled that the suit was "unlikely to succeed on the merits of any of its three causes of action" and refused to grant Zango a temporary restraining order.

Also in May 2007, Zango filed in the same court a similar lawsuit against Kaspersky Lab
Kaspersky Lab
Kaspersky Lab is a Russian computer security company, co-founded by Natalia Kaspersky and Eugene Kaspersky in 1997, offering anti-virus, anti-spyware, anti-spam, and anti-intrusion products...

, accusing it of tortious interference, trade libel and unjust enrichment
Unjust enrichment
Unjust enrichment is a legal term denoting a particular type of causative event in which one party is unjustly enriched at the expense of another, and an obligation to make restitution arises, regardless of liability for wrongdoing.Definition:...

 for blocking the installation of Zango software. Kaspersky defended itself by invoking the Communications Decency Act
Communications Decency Act
The Communications Decency Act of 1996 was the first notable attempt by the United States Congress to regulate pornographic material on the Internet. In 1997, in the landmark cyberlaw case of Reno v. ACLU, the United States Supreme Court struck the anti-indecency provisions of the Act.The Act was...

 (CDA), saying it was immune from civil liability based on the paragraph of the CDA headed "Protection for 'Good Samaritan' blocking and screening of offensive material". The judge agreed, granting Kasperky's motion for summary judgment
Summary judgment
In law, a summary judgment is a determination made by a court without a full trial. Such a judgment may be issued as to the merits of an entire case, or of specific issues in that case....

. In 2008, Zango appealed against the ruling. As of April 2008, the National Business Coalition for E-Commerce and Privacy was supporting Zango in the appeal. In June 2009 the court ruled that Kaspersky could not be held liable for any actions it took to manufacture and distribute the technical means to restrict Zango software's access to others.

Installation and removal

Unusual methods of installation and operation have evolved as software such as Zango is targeted to run on a broader mix of applications and platforms. Zango has stated on their website that any Zango "application" can be completely uninstalled by using the Microsoft Windows "Add or Remove Programs" function. However, Zango may appear as a browser plug-in or in some other form which cannot be removed by the officially recommended procedure.

Utilities exist for the purpose of detecting, and in some cases removing Zango and similar software. Some software advisers have recommended that people seeking to remove Zango-like software from their computers search for instructions specific to their particular platform, application, and installation.

Hotbar

Hotbar (also known as HbTools) is a plugin for Internet Explorer
Internet Explorer
Windows Internet Explorer is a series of graphical web browsers developed by Microsoft and included as part of the Microsoft Windows line of operating systems, starting in 1995. It was first released as part of the add-on package Plus! for Windows 95 that year...

, Microsoft Office Outlook and Outlook Express
Outlook Express
Outlook Express is an email and news client that is included with Internet Explorer versions 4.0 through 6.0. As such, it is also bundled with several versions of Microsoft Windows, from Windows 98 to Windows Server 2003, and is available for Windows 3.x, Windows NT 3.51, Windows 95 and Mac OS 9...

 produced by Zango; Hotbar has closed distribution, but is still available to those who still have the installer. From version 10.2 on, it identifies itself as belonging to Pinball Corp. Hotbar adds a toolbar and the option of extra skins
Skin (computing)
In computing, a skin is a custom graphical appearance achieved by the use of a graphical user interface that can be applied to specific software and websites to suit the purpose, topic, or tastes of different users....

 to these programs. It also allows the user to add emoticons to emails created in Outlook or Outlook Express and to check weather reports. Its major revenue comes from the use of pop-ups displayed according to a user's behavior and current URL. The application can show over 15 pop-ups a day, depending on how much Internet browsing has occurred. The last reported usable version is 10.0.357.0, dated 9-10-2007. Currently, it often self-updates to a later version that deactivates the toolbar and Outlook components (as it is completely incompatible with all versions of Internet Explorer after IE7, along with all Windows Mail
Windows Mail
Windows Mail is an email and newsgroup client included in Windows Vista, that was superseded by Windows Live Mail. It is the successor to Outlook Express. Microsoft previewed Windows Mail on Channel 9 on October 10, 2005....

 and Windows Live Mail
Windows Live Mail
Windows Live Mail is a free of charge email client from Microsoft's Windows Live set of products. It is intended to be a successor for Outlook Express on Windows XP and Windows Mail on Windows Vista...

 products), rendering it useless.

Hotbar Premium

Hotbar as supplied by Zango had an option to turn off the advertisements, for a fee. The fee-based Premium access also unlocked certain content beyond the preview stage in Hotbar's utilities. Grandfathered version 4 Premium accounts had unlimited access, as long as the activation link supplied when purchased was saved. Version 4 of Hotbar is no longer usable, as all content is accessible only to version 10. 365-day accounts were sold, valid only for the Hotbar toolset; if Zango was installed alongside Hotbar Premium. In the overlaid installation, Zango's but not Hotbar's, advertising was shown. Hotbar no longer has premium access available for purchase, so all Premium content is not currently usable. Premium assets may be accessed through examination of linking and related code and insertion into use. Zango itself did not offer Premium access. Hotbar's website does not mention Premium access.

Controversy

Hotbar is an example of adware
Adware
Adware, or advertising-supported software, is any software package which automatically plays, displays, or downloads advertisements to a computer. These advertisements can be in the form of a pop-up. They may also be in the user interface of the software or on a screen presented to the user during...

 due to its banner advertising and use of pop-up windows. Also the user's browsing habits are sent to the Hotbar servers with a unique user ID which allows a user's browsing habits to be tracked over an extended period. Spyware researcher Benjamin Edelman defined Hotbar's problems:
Promoting Hotbar advertising software at sites targeting kids, using banners with smiley faces but without mention of ads. Failing to affirmatively show a license agreement, and burying advertising terms so many screens into the license and below such counterintuitively-labeled section headings that users cannot reasonably find the key provisions. First affirmatively mentioning advertising on a screen that offers no Cancel button for users to decline the installation. And ultimately bombarding users with ads in pop-ups, web browser toolbars, Windows Explorer toolbars, auto-opening sidebars, and even desktop icons.


In 2005–2006 Hotbar.com started sending cease and desist
Cease and desist
A cease and desist is an order or request to halt an activity and not to take it up again later or else face legal action. The recipient of the cease-and-desist may be an individual or an organization....

 letters to security companies which defined Hotbar as "malware
Malware
Malware, short for malicious software, consists of programming that is designed to disrupt or deny operation, gather information that leads to loss of privacy or exploitation, or gain unauthorized access to system resources, or that otherwise exhibits abusive behavior...

". As a countermeasure, Symantec successfully sued Hotbar.com to get clear right to put it in their "low risk adware"-category.

Hotbar can be detected and removed by several anti-spyware
Spyware
Spyware is a type of malware that can be installed on computers, and which collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user, and can be difficult to detect. Typically, spyware is secretly installed on the user's...

 and anti-virus programs, including Windows Defender
Windows Defender
Windows Defender, formerly known as Microsoft AntiSpyware, is a software product from Microsoft to prevent, remove, and quarantine spyware in Microsoft Windows...

, Spybot - Search & Destroy
Spybot - Search & Destroy
Spybot Search & Destroy is a popular spyware and adware removal program compatible with Microsoft Windows 95 and later. It scans the computer hard disk and/or RAM for malicious software....

, Nod 32, and Norton AntiVirus
Norton AntiVirus
Norton AntiVirus, developed and distributed by Symantec Corporation, provides malware prevention and removal during a subscription period. It uses signatures and heuristics to identify viruses. Other features include e-mail spam filtering and phishing protection.Symantec distributes the product as...

. However, some utilities do not remove Hotbar completely and leave Windows registry
Windows registry
The Windows Registry is a hierarchical database that stores configuration settings and options on Microsoft Windows operating systems. It contains settings for low-level operating system components as well as the applications running on the platform: the kernel, device drivers, services, SAM, user...

 keys and files behind.

Seekmo

Seekmo is an adware
Adware
Adware, or advertising-supported software, is any software package which automatically plays, displays, or downloads advertisements to a computer. These advertisements can be in the form of a pop-up. They may also be in the user interface of the software or on a screen presented to the user during...

 program by Zango that claimed to be a free tool to provide content such as mp3 files, screen savers, and videos. Seekmo can pop up advertisements even when users have pop-up blockers on their computers, and monitors computer usage to generate ads that users are more likely to respond to. In the process, the program can consume processing power and network bandwidth, slowing down the computer and interrupting other programs. Upon downloading a Seekmo-containing file, license acquisition will begin and the program (Windows Media Player, for example) will display a window describing the content and what Seekmo is. Upon clicking "Accept", it will automatically send a file for download called "Setup.exe". After downloading this file users must install the Seekmo Toolbar, which will display advertisements related to the websites visited. Seekmo is still available, and identifies itself as belonging to Pinball Corp.; operation may no longer be as described above.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK