The FTC on Nov. 3 found that Zango has met or exceeded the key notice and consent standards detailed in its consent order since at least Jan. 1 of this year.
The biggest change in Zango’s business practices since January 2006 is the elimination of all third-party affiliates. All new business partners have a direct contractual agreement with Zango.
As of Jan. 1, 2006, Zango retired its past products and required that all its applications include an enhanced version of its proprietary Safe and Secure Search (S3) technology.
This version of S3 features the Closed Loop System (CLS), a built-in software enhancement that enables quicker detection of unauthorized attempts to install the company’s desktop advertising software.
Zango has engaged Richard Purcell, CEO of the Corporate Privacy Group, to audit Zango’s compliance against each of the FTC’s requirements as an independent party. The former chief privacy officer at Microsoft and current chairman of the board for Truste, will report his findings within a month.
“We see the FTC’s ruling as a milestone in establishing a much needed set of guidelines for online advertising practices,’ Mr. Smith said.
In response to the settlement on Nov. 3, Truste, San Francisco, announced the Trusted Download Program to certify consumer downloadable software programs. It is accepting applications for certification.
A white list of the certified applications that adhere to new standards is expected to be publicly available in December. The program’s sponsors, such as Microsoft, AOL, CA, CNET Networks, Verizon and Yahoo, will use this white list to help make business decisions about advertising, partnering or distributing software products.
The complete set of program requirements is available on the Trusted Download Web site at
www.trusteddownload.com.
“All business should embrace these standards set out by the FTC, just as Zango has done,” Ms. Varney said.