Bonzi Software, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF BONZI SOFTWARE, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-4126; File No. 0423016 Complaint, October 7, 2004--Decision, October 7, 2004 This consent order, among other things, prohibits Respondents Bonzi Software, Inc., Joe Bonzi, and Jay Bonzi from misrepresenting the extent to which their product InternetALERT -- or any other software product or service that is marketed as enhancing security -- will reduce the risk of unauthorized access into a computer. The order also prohibits the respondents from misrepresenting the extent which any such product or service will maintain, protect, or provide security features that will enhance the security or privacy of any computer -- or any data that is stored in a computer, including personally identifiable information -- and from misrepresenting the performance, benefits, or efficacy of any computer software product or service that is marketed as enhancing security or privacy. In addition, the order requires the respondents to pay refunds to current InternetALERT subscribers who opt to cancel their subscriptions.

Participants For the Commission: Laura M. Sullivan, Dean C. Forbes, Thomas B. Pahl, Mary K. Engle, and Hajime Hadeishi. For the Respondents: Saro Rizzo, and Barry J. Reingold, Perkins Coie, LLP.

COMPLAINT The Federal Trade Commission, having reason to believe that Bonzi Software, Inc., a corporation, and Joe Bonzi and Jay Bonzi, individually and as officers of said corporation (“respondents”), have violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

VOLUME 138 Complaint 1. Respondent Bonzi Software, Inc., a Delaware corporation, is a privately owned company with its principal office and place of business located at 3000 Broad Street, Suite 115, San Luis Obispo, California 93401.

Respondents Joe Bonzi and Jay Bonzi are the founders, owners, and officers of the corporate respondent. Individually, or in concert with others, they formulate, direct, and control the acts and practices of the corporate respondent, including the acts and practices alleged in this complaint.

2. The acts and practices of respondents as alleged in this complaint have been in or affecting commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act. 3. Respondents develop, advertise, sell, license, and distribute various software products, including “InternetALERT.” InternetALERT is software that monitors Internet traffic entering a consumer’s computer and provides alerts when an attacker attempts to access the computer from the Internet without the consumer’s knowledge or permission. InternetALERT is offered for sale, sold, distributed, and licensed by respondents primarily through respondents’ Web site www.bonzi.com at the price of $49 for a one-year subscription.

4. Respondents promote InternetALERT software on the Internet through banner, button, and pop-up ads, which, when clicked, transfer consumers to one of several Web pages advertising the software. These click-through Web pages, or landing pages, link to the respondents’ Web site www.bonzi.com, where consumers can download InternetALERT from the Internet. Respondents also promote the software during the software’s installation process.

5. Respondents have disseminated, or have caused to be disseminated, banner, button, and pop-up advertisements for the InternetALERT software, including, but not limited to, those attached as Exhibits A through C:

VOLUME 138 Complaint Exhibit A Exhibit A, button ad located at www.mallbusters.com/internet_alert.htm (as of July 3, 2003).

Exhibit B Exhibit B, banner ad located at www.myconsumerguide.com/internet_alert.htm (as of May 5, 2003).

VOLUME 138 Complaint Exhibit C Exhibit C, pop-up ad located at www.bonzi.com/internetalert/ia99.asp (as of April 1, 2003). 6. Respondents have disseminated, or have caused to be disseminated, Web pages, including, but not limited to, that attached as Exhibit D, containing, among others, the following statements:

Exhibit D InternetALERT Protect Your PC from Internet Attackers! Your Computer’s Data Is At Risk! (SEE BELOW.) Your computer’s address is: [IP Address]. Every time you connect to the Internet, send e-mail, or submit any private information to a web site, you broadcast your computer’s unique IP Address over the Internet. With this IP address, someone can immediately begin trying to break into your computer without you even knowing it! Until now, there has been no way of telling if this has happened or any way of stopping it! Well not anymore! YOUR COMPUTER'S ADDRESS IS: [IP Address] What Can Happen To Me? Steal Your Credit Card & Personal Information! Read Your E-Mail! VOLUME 138 Complaint Plant a Virus or Worm! Steal Online Banking Information! Delete files from your computer! InternetALERT is an absolute ‘MUST’ for anyone connecting to the Internet! It will notify you if someone is breaking into your computer, stop them dead in their tracks, and even build a visual map showing you the Attacker’s ISP (Internet Service Provider) location! You can now connect to the Internet with the comfort and security of knowing that no one from the Internet can access your computer without your knowledge or permission! * * * InternetALERT is easy-to-use! Once installed, you can go about your work without a worry. It runs silently in the background protecting you. Every time you turn on your computer, InternetALERT starts working automatically, only leaping into action when suspicious connection attempts are made to your computer.

* * * Download & Protect Yourself Against Internet Attackers Now - $49 (1 Year Subscription) For a limited time, you may now download and start protecting yourself against Internet Attackers for only $49 per year! * * * You're now minutes away from protecting yourself!” Exhibit D: Web pages advertising InternetALERT entitled “Protect Yourself From Internet Intruders!,” located at www.deals-and-links.com/internetalert.htm (as of July 3, 2003). VOLUME 138 Complaint See also www.bonzi.com/internetalert/ia99.asp (as of April 29, 2003); www.bonzi.com/defaultbody.htm;

www.internet-alert-pc-protection.com/index.asp?Campaign=2000 (as of July 3, 2003).

7. Respondents have disseminated, or have caused to be disseminated, various statements on their Web site www.bonzi.com during the InternetALERT software’s download process, and through a message alert during the software’s uninstall process, including, but not limited to, those shown in Exhibits E and F:

Exhibit E InternetALERT® Download Make Your Computer Safe & Secure In 5 Minutes . . . * * * You’re now minutes away from protecting your system against malicious attackers! Simply complete the secure form below and then press the ‘Protect’ button. You will be granted immediate access to the full version of InternetALERT and in minutes make your computer safe and secure against Internet attackers! * * * Protect My System Against Attackers – Download Now!” Exhibit E: Form entitled “InternetALERT Secure Order Form” that initiates the download process for InternetALERT software, located at https://secure.bonzi.com/secure/securedownloadia9sub.asp (as of July 3, 2003).

VOLUME 138 Complaint Exhibit F InternetAlert - WARNING WARNING: Your (sic) are about to Disable InternetAlert. Your computer will no longer be protected against outside harmful attacks. Are you sure you want to disable InternetAlert? [Yes] [No]”

Exhibit F: Message displayed during the uninstall process for the InternetALERT software (as of July 3, 2003). 8. Data enter and exit a computer connected to the Internet by using gateways known as communications ports. These ports enable a computer to establish connections to other computers and to exchange data and are used to handle common network services, such as Web browser or email client services. Ports that are being used are “open” and “listening” for communications, for different periods of time, depending on the type of service they are handling at the time. Internet attackers seek to identify which ports are open on a computer through “port scanning” or other techniques, and may be able to enter a computer from the Internet by using one of a computer’s open ports. 9. InternetALERT monitors and provides alerts to consumers on certain communications ports concerning attempts to gain unauthorized access into computers. Prior to October 2003, InternetALERT automatically monitored up to eleven communications ports. Since October 2003, it has automatically monitored up to twenty-one communications ports. Consumers also may be able to manually select additional ports for monitoring by InternetALERT.

10. If an automatically selected port or manually selected port is closed at the time that InternetALERT is installed, the software will open the closed port to monitor it and provide alerts. VOLUME 138 Complaint 11. If an automatically selected port or manually selected port is open at the time that InternetALERT is installed, InternetALERT will not monitor it.

12. Through the means described in Paragraphs 5 through 7, respondents have represented, expressly or by implication, that InternetALERT significantly reduces the risk of unauthorized access into computers and the data stored in them. 13. In truth and in fact, InternetALERT does not significantly reduce the risk of unauthorized access into computers and the data stored in them. InternetALERT does not significantly reduce the risk of unauthorized access into computers because it provides only limited protection against intrusion into computers, as described in Paragraphs 9 through 11 above. Moreover, InternetALERT does not provide other security features that can significantly reduce the risk to data stored in computers, such as features that prevent personally identifiable information stored in a computer from being sent over the Internet without a consumer’s knowledge or consent, or that provide computer virus protection. 14. The acts and practices of respondents as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission this seventh day of October, 2004, has issued this complaint against respondents. EXHIBIT A Internet Alert - Download Internet Alert - Internet Alert Privacy Protection - Internet Alert Anti Virus Page 1 of 1 Shopping... Without the Baggage"

- Shopping Online Internet Alert Internet Alert! Internet Alert Intruder Protection - Download Internet Alert! Internet Alert protects you from hackers and attackers. Without Internet Alert - Your Computer's Data Is At Risk! Once you sign on to Internet Alert you'll see how easy someone can grab your IP Address.

Without Internet Alert -- Every time you connect to the Internet, send e-mail, or submit any private information to a web site, you broadcast your computer's unique IP Address over the Internet. Internet Alert is a must is you spend time online! Without Internet Alert, people can get access to your computer while you're online! What can people do with your computer information? Steal Your Credit Card & Personal Information!; Read Your E-Mail!; Plant a Virus or Worm!; Steal Online Banking Information!; Delete files from your computer!; and worse. Internet Alert is easy-to-use! Once you download Internet Alert, you can go about your work without a worry. Internet Alert runs silently in the background protecting you. Every time you turn on your computer, Internet Alert starts working automatically, only leaping into action when suspicious connection attempts are made to your computer. Click Here To Test Your PC Security With Internet Alert! Internet Alert News Internet Alert Sale? Get MallBusters News! Enter Email and Go! Shopping Mall Home | About | Privacy [| Contact Shopping Mall Store Directory | Free Gift Reminder Service | Email This Page To a Friend ! http://www.mallbusters.com/internet_alert.htm 7/3/2003 EXHIBIT B iternet Alert - Click here to go! Arts & Collectibles Automotive Baby & Kids Beauty Books & Magazines Clothing & Shoes Computer & Software Consumer Electronics Education Financial Services Flowers & Gifts.

Food & Beverages Hardware & Tools Health & Wellness Home & Garden Internet & Gniine Insurance Jewelry & Watches Kitchen & Housewares Movies & Music Office & Business Pet Supplies Sporting Goods Telecommunications Toys & Games Travel ar.

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al InternetALERT - Download & Protect.

Yourself Against Internet Attackers Now! Protect yourself from hackers and trouble makers for just $49! (1 Year Subscription) internet Alert - Click here to go! InternetALERT is a must-have for anyone on the Internet! With InternetALERT you will know when someone is breaking into your computer. The downloadable program even gives you a visual map showing you the attacker's ISP (Internet Service Provider) location! With InternetALERT you can connect to the Internet with the comfort and security of knowing that no one from the Internet can access your computer without your knowledge or permission! * ; Security Alert MyConsumerGuide Says: , InternetALERT is an affordable solution to hackers messing with your computer files. We think $49 for a year's service is worth the price to protect your private information from internet intruders. We hear about fraud taking place on the computer more and more these days. We think InternetALERT provides an answer to the problem that's more common than most of us would like to believe! Site Ease of Use: Once you click on our links, information on InternetALERT instantly appears. The program itself is easy-touse. Every time you turn on your computer, InternetALERT starts working automatically, only notifying you when suspicious connection attempts are made to your computer. Third Party Reviews:

Customer Testimonials:

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0 0 2310 3195 157 36 -1 3 1 46 1 0 0 2310 3195 157 36 -1 4 1 46 1 1 0 2310 3195 157 36 -1 5 1 46 1 1 1 2310 3195 157 36 86.087997 5/5/200: ernet Alert - Click here to go! . Page 2 of 2 harm was done. | had been hacked once before | got Internet Alert and it took weeks to get things back to normal. This time your program caught the hacker! I'm so impressed 'm going to put your link on my cool5 1 2 1 3 10 1068 306 76 29 96.587204 links5 1 2 1 3 11 1156 304 97 37 92.556740 page”5 1 2 1 3 12 1265 303 61 30 96.001068 ands 1 2 1 3 13 1340 298 113 40 93.289368 maybe5 1 2 1 3 14 1465 296 122 41 81.437050 get-you5 1 2 1 3 15 1600 305 92 22 96.853867 some5 1 2 1 3 16 1705 295 174 31 88.532700 business. - Mari Hetfield - NH.

Since5 1 3 1 1 2 561 459 4 29 96.749474 |5 1 3 1 1 3 579 456 204 32 93.290932 downloaded5 1 3 1 1 4 799 451 249 33 91.164238 InternetALERT5 1 3 1 1 5 1061 458 50 29 96.864784 my5 1 3 1 1 6 1122 449 143 30 96.995499 machines 1 3 1 1 7 1279 448 58 29 96.361458 has5 1 3 1 1 8 1350 446 60 30 96.361458 had5 1 3 1 1 9 1424 453 40 22 96.911736 an5 1 3 1 1 10 1478 443 166 37 95.312111 attempted5 1 3 1 1 11 1658 441 87 34 96.472176 hack,5 1 3 1 1 12 1758 440 97 29 96.641075 twice.4 1 3 1 2 0 443 483 1457 52 -1 5 1 3 1 2 1 443 503 91 30 96.713715 Since5 1 3 1 2 2 549 502 5 29 94.491119 |5 1 3 1 2 3 568 503 79 28 96.265274 have5 1 3 1 2 4 660 500 61 29 96.950745 had5 1 3 1 2 5 733 500 53 28 96.951828 thes 1 3 1 2 6 800 504 139 31 96.951828 programs 1 3 1 2 7 952 496 65 29 96.879669 less5 1 3 1 2 8 1029 495 75 28 96.884209 than5 1 3 1 2 9 1115 494 20 28 95.901588 45 1 3 1 2 10 1147 493 89 36 95.901588 days,5 1 3 1 2 11 1251 491 6 29 84.774643 |5 1 3 1 2 12 1270 490 126 30 96.417732 wonders 1 3 1 2 13 1407 489 69 29 96.690994 how5 1 3 1 2 14 1489 494 90 29 96.963310 many5 1 3 1 2 15 1589 486 92 29 96.760063 times5 1 3 1 2 16 1694 491 49 29 96.635742 my5 1 3 1 2 17 1756 483 144 29 96.419250 machine4 1 3 1 3 0 444 525 1441 52 -1 5 1 3 1 3 1 444 546 58 29 96.983475 has5 1 3 1 3 2 515 545 80 29 96.791473 been5 1 3 1 3 3 608 542 120 31 96.887062 hacked5 1 3 1 3 4 743 542 26 29 96.980080 in5 1 3 1 3 5 781 541 54 29 96.973022 thes 1 3 1 3 6 848 540 79 37 92.394112 past.5 1 3 1 3 7 942 538 5 29 91.444977 |5 1 3 1 3 8 962 538 52 29 96.987213 not5 1 3 1 3 9 1025 536 70 37 96.996864 only5 1 3 1 3 10 1107 536 88 28 96.403519 knew5 1 3 1 3 11 1205 533 34 30 96.689568 of5 1 3 1 3 12 1247 534 54 28 96.945007 thes 1 3 1 3 13 1313 530 179 32 96.457291 STOPPED5 1 3 1 3 14 1506 528 109 34 96.781540 attack,5 1 3 1 3 15 1629 528 52 29 96.781212 but5 1 3 1 3 16 1690 533 69 22 96.660347 was5 1 3 1 3 17 1771 525 71 37 96.850006 able5 1 3 1 3 18 1853 526 32 27 96.045227 to4 1 3 1 4 0 445 567 1455 57 -1 5 1 3 1 4 1 445 587 87 37 96.975945 notify5 1 3 1 4 2 544 587 51 29 96.963371 thes 1 3 1 4 3 608 586 73 37 96.150177 rights 1 3 1 4 4 692 591 115 31 96.150177 persons 1 3 1 4 5 820 584 29 28 96.571213 to5 1 3 1 4 6 863 583 70 35 97.006790 stops 1 3 1 4 7 945 581 51 29 97.013481 thes 1 3 1 4 8 1009 579 145 30 96.919823 attacker.5 1 3 1 4 9 1169 577 19 29 42.460320 It5 1 3 1 4 10 1197 576 100 29 96.844238 would5 1 3 1 4 11 1310 576 40 28 96.153938 be5 1 3 1 4 12 1361 573 110 30 96.153938 foolish5 1 3 1 4 13 1482 572 45 29 96.826370 for5 1 3 1 4 14 1539 577 123 30 96.826370 anyone5 1 3 1 4 15 1672 569 70 29 96.317169 who5 1 3 1 4 16 1756 568 25 29 96.695320 is5 1 3 1 4 17 1793 575 41 22 95.875122 on5 1 3 1 4 18 1846 567 54 29 96.243286 thea 1 3 1 5 0 446 609 1483 55 -1 5 1 3 1 5 1 446 631 132 33 82.499672 intemet,5 1 3 1 5 2 592 630 51 29 96.879677 not5 1 3 1 5 3 653 630 30 28 96.879677 to5 1 3 1 5 4 698 628 80 29 96.889923 have5 1 3 1 5 5 790 625 76 30 96.948692 theirs 1 3 1 5 6 877 623 141 31 96.991943 machines 1 3 1 5 7 1032 620 157 39 96.753288 protected5 1 3 1 5 8 1200 619 68 29 96.992096 with5 1 3 1 5 9 1280 625 74 31 96.978951 yours 1 3 1 5 10 1366 618 128 36 96.651237 system.5 1 3 1 5 11 1508 615 114 29 96.518776 Please5 1 3 1 5 12 1635 613 80 35 96.889877 keeps 1 3 1 5 13 1729 618 39 30 96.870102 up5 1 3 1 5 14 1780 611 52 29 96.377205 thes 1 3 1 5 15 1845 609 84 38 96.405319 good4 1 3 1 6 0 445 653 1420 51 -1 5 1 3 1 6 1 445 673 88 30 95.212097 work.5 1 3 1 6 2 549 673 17 28 83.971199 It5 1 3 1 6 3 578 673 25 28 90.589241 is5 1 3 1 6 4 615 671 86 30 96.266403 awful5 1 3 1 6 5 714 670 75 29 96.793907 theirs 1 3 1 6 6 802 676 52 22 96.559029 ares 1 3 1 6 7 867 675 37 22 96.891754 so5 1 3 1 6 8 918 673 92 29 96.690056 many5 1 3 1 6 9 1022 655 51 53 96.991524 bad5 1 3 1 6 10 1090 655 98 53 96.786774 peoples 1 3 1 6 11 1222 662 27 29 95.398956 in5 1 3 1 6 12 1260 662 53 28 95.398956 thes 1 3 1 6 13 1324 660 100 33 94.781593 world,5 1 3 1 6 14 1438 659 53 29 96.980141 but5 1 3 1 6 15 1501 655 163 32 96.830162 wonderful5 1 3 1 6 16 1676 655 65 29 96.938187 that5 1 3 1 6 17 1753 653 112 38 96.457932 people4 1 3 1 7 0 448 696 1405 56 -1 5 1 3 1 7 1 448 717 54 29 89.982483 likes 1 3 1 7 2 514 723 68 29 96.915695 you,5 1 3 1 7 3 594 715 71 29 96.958176 takes 1 3 1 7 4 678 721 19 22 96.891777 a5 1 3 1 7 5 710 714 87 36 96.736687 great5 1 3 1 7 6 809 712 65 36 91.133812 parts 1 3 1 7 7 885 710 27 29 91.133812 in5 1 3 1 7 8 926 708 164 38 96.245491 protecting5 1 3 1 7 9 1104 705 113 38 60.217842 peoples 1 3 1 7 10 1229 703 205 37 96.490181 everywhere.5 1 3 1 7 11 1446 701 125 30 96.450706 Thanks5 1 3 1 7 12 1582 706 39 23 96.457664 so5 1 3 1 7 13 1635 697 115 30 91.400360 much! - Ron Combs - Very satisfied customer! :

“| could not believe how many people were trying to get into my system!" - Carly Sutton More Company Details:

What InternetALERT Says:

Every5 1 5 3 1 2 575 1069 70 28 96.534996 times 1 5 3 1 3 656 1074 61 30 96.617317 you5 1 5 3 1 4 730 1065 134 30 94.758308 connects 1 5 3 1 5 874 1064 30 28 94.758308 to5 1 5 3 1 6 916 1063 52 28 96.964027 thes 1 5 3 1 7 982 1061 137 32 96.681831 Internet,5 1 5 3 1 8 1132 1058 81 30 95.550110 sends 1 5 3 1 9 1225 1056 111 34 95.550110 e-mail,5 1 5 3 1 10 1350 1063 34 22 96.564117 or5 1 5 3 1 11 1395 1054 111 30 96.564117 submits 1 5 3 1 12 1518 1060 59 29 96.758133 any5 1 5 3 1 13 1590 1051 111 37 96.933739 private5 1 5 3 1 14 1715 1048 186 31 96.745499 information4 1 5 3 2 0 455 1090 1462 55 -1 5 1 5 3 2 1 455 1113 31 27 96.491394 to5 1 5 3 2 2 500 1118 18 22 93.444580 a5 1 5 3 2 3 529 1111 68 28 93.444580 web5 1 5 3 2 4 609 1110 68 33 96.941711 site,5 1 5 3 2 5 689 1115 60 30 96.454353 you5 1 5 3 2 6 763 1106 167 30 96.232872 broadcasts 1 5 3 2 7 940 1111 75 29 96.884377 yours 1 5 3 2 8 1026 1100 184 38 78.746567 computer's5 1 5 3 2 9 1222 1100 112 35 96.351463 unique5 1 5 3 2 10 1348 1098 33 29 96.577835 IP5 1 5 3 2 11 1393 1097 138 29 96.752510 Address5 1 5 3 2 12 1543 1101 75 23 96.359337 overs 1 5 3 2 13 1627 1094 52 28 97.009621 thes 1 5 3 2 14 1694 1092 135 29 96.520348 Internet.5 1 5 3 2 15 1842 1090 75 29 96.953735 With4 1 5 3 3 0 457 1129 1398 55 -1 5 1 5 3 3 1 457 1153 59 29 95.920631 this5 1 5 3 3 2 529 1152 31 29 85.385864 IP5 1 5 3 3 3 574 1152 142 32 96.400406 address,5 1 5 3 3 4 729 1155 156 24 96.688049 someone5 1 5 3 3 5 898 1154 58 22 96.617271 cans 1 5 3 3 6 970 1143 203 36 96.627899 immediately5 1 5 3 3 7 1184 1141 91 37 96.781593 begins 1 5 3 3 8 1287 1140 91 37 96.949966 trying5 1 5 3 3 9 1390 1140 31 28 95.593323 to5 1 5 3 3 10 1434 1138 94 30 95.593323 breaks 1 5 3 3 11 1540 1137 59 29 96.902962 into5 1 5 3 3 12 1611 1142 75 30 96.937164 yours 1 5 3 3 13 1696 1129 159 46 96.030296 computer4 1 5 3 4 0 457 1175 1373 56 -1 5 1 5 3 4 1 457 1195 121 36 96.552315 without5 1 5 3 4 2 588 1201 59 29 96.387955 you5 1 5 3 4 3 660 1199 81 23 96.916077 even5 1 5 3 4 4 755 1190 136 35 96.062645 knowing5 1 5 3 4 5 905 1189 27 28 96.062645 it!5 1 5 3 4 6 946 1187 73 30 96.398582 Until5 1 5 3 4 7 1032 1193 79 27 96.398582 now,5 1 5 3 4 8 1122 1185 87 29 96.572708 there5 1 5 3 4 9 1221 1184 60 28 96.380936 has5 1 5 3 4 10 1294 1183 81 29 96.380936 been5 1 5 3 4 11 1389 1188 39 22 95.879715 no5 1 5 3 4 12 1439 1187 68 29 96.967468 ways 1 5 3 4 13 1519 1179 32 29 95.526947 of5 1 5 3 4 14 1560 1178 98 35 95.526947 telling5 1 5 3 4 15 1671 1176 20 29 96.084137 if5 1 5 3 4 16 1699 1176 60 29 96.805954 this5 1 5 3 4 17 1771 1175 59 29 96.329697 has4 1 5 3 5 0 460 1220 915 53 -1 5 1 5 3 5 1 460 1236 165 37 96.853653 happened5 1 5 3 5 2 637 1242 35 22 96.424652 or5 1 5 3 5 3 683 1241 60 29 96.972076 any5 1 5 3 5 4 753 1240 69 29 96.397507 ways 1 5 3 5 5 833 1231 32 30 95.588455 of5 1 5 3 5 6 876 1229 141 37 95.588455 stopping5 1 5 3 5 7 1031 1228 26 29 96.682571 it!5 1 5 3 5 8 1068 1227 75 30 94.385818 Wells 1 5 3 5 9 1156 1227 53 28 94.385818 not5 1 5 3 5 10 1219 1220 156 45 96.367683 anymore!2 1 6 0 0 0 457 1318 1487 305 -1 3 1 6 1 0 0 457 1318 1487 305 -1 4 1 6 1 1 0 464 1318 1427 49 -1 5 1 6 1 1 1 464 1336 247 30 91.983582 InternetALERT5 1 6 1 1 2 723 1335 25 28 96.580406 is5 1 6 1 1 3 762 1340 84 23 96.743645 more5 1 6 1 1 4 858 1332 72 29 96.870644 than5 1 6 1 1 5 941 1331 61 36 96.888290 just5 1 6 1 1 6 1014 1328 165 38 96.873825 protections 1 6 1 1 7 1192 1326 121 36 96.990219 against5 1 6 1 1 8 1326 1324 128 29 93.306152 Internet5 1 6 1 1 9 1467 1321 163 33 41.869156 intruder's,5 1 6 1 1 10 1644 1320 18 28 93.761429 it5 1 6 1 1 11 1673 1319 103 29 93.761429 allows5 1 6 1 1 12 1788 1325 60 29 96.419296 you5 1 6 1 1 13 1860 1318 31 28 96.856812 to4 1 6 1 2 0 457 1360 1487 54 -1 5 1 6 1 2 1 457 1380 87 28 89.348083 tracks 1 6 1 2 2 556 1379 86 29 96.895248 downs 1 6 1 2 3 655 1384 75 30 93.041512 yours 1 6 1 2 4 743 1374 154 31 86.323944 Intruder’s5 1 6 1 2 5 911 1373 57 29 89.182755 ISP5 1 6 1 2 6 982 1372 142 35 87.914307 (Internet5 1 6 1 2 7 1134 1369 125 29 96.867859 Services 1 6 1 2 8 1273 1366 151 35 96.201454 Provider)5 1 6 1 2 9 1437 1365 122 29 96.336685 contacts 1 6 1 2 10 1570 1361 186 31 96.349602 information5 1 6 1 2 11 1768 1360 61 29 96.642426 ands 1 6 1 2 12 1843 1360 101 35 96.842178 report4 1 6 1 3 0 463 1402 1386 50 -1 5 1 6 1 3 1 463 1422 51 29 96.883614 thes 1 6 1 3 2 527 1421 108 29 96.073326 attack.5 1 6 1 3 3 647 1420 71 28 96.883057 This5 1 6 1 3 4 731 1418 104 29 96.980759 allows5 1 6 1 3 5 847 1423 59 29 97.000450 you5 1 6 1 3 6 918 1417 31 27 96.955635 to5 1 6 1 3 7 961 1414 125 29 95.450096 contacts 1 6 1 3 8 1094 1412 53 36 93.216537 thes 1 6 1 3 9 1161 1410 153 30 63.613686 Intruder's5 1 6 1 3 10 1329 1408 58 30 91.280411 ISP5 1 6 1 3 11 1399 1407 61 29 96.635262 ands 1 6 1 3 12 1474 1406 90 29 96.823563 makes 1 6 1 3 13 1575 1405 84 28 96.796928 them5 1 6 1 3 14 1672 1409 101 23 96.192848 aware5 1 6 1 3 15 1785 1402 64 29 96.192848 that4 1 6 1 4 0 465 1444 1443 48 -1 5 1 6 1 4 1 465 1470 153 22 96.395210 someone5 1 6 1 4 2 630 1469 40 22 96.866234 on5 1 6 1 4 3 682 1461 75 29 96.720909 theirs 1 6 1 4 4 769 1458 131 30 96.700600 networks 1 6 1 4 5 912 1457 60 28 96.700600 has5 1 6 1 4 6 983 1455 72 29 96.652565 tried5 1 6 1 4 7 1067 1456 32 27 96.985947 to5 1 6 1 4 8 1111 1453 101 30 96.626434 attacks 1 6 1 4 9 1222 1459 76 29 96.288757 yours 1 6 1 4 10 1308 1448 167 38 96.738579 computer.5 1 6 1 4 11 1489 1449 28 28 96.864456 In5 1 6 1 4 12 1531 1448 81 28 96.960846 most5 1 6 1 4 13 1623 1452 107 26 96.866058 cases,5 1 6 1 4 14 1742 1444 72 36 96.698013 they5 1 6 1 4 15 1826 1444 82 28 96.934311 have4 1 6 1 5 0 464 1485 1350 56 -1 5 1 6 1 5 1 464 1506 52 28 96.254318 thes 1 6 1 5 2 530 1511 101 30 96.930458 powers 1 6 1 5 3 640 1504 31 28 96.930458 to5 1 6 1 5 4 682 1502 61 30 96.777466 finds 1 6 1 5 5 756 1502 53 29 96.781197 outs 1 6 1 5 6 820 1500 67 29 96.950729 who5 1 6 1 5 7 899 1498 52 30 96.971771 thes 1 6 1 5 8 965 1496 131 31 93.672211 Intruder5 1 6 1 5 9 1107 1495 25 30 96.818489 is5 1 6 1 5 10 1144 1494 61 30 95.999275 ands 1 6 1 5 11 1218 1493 127 37 96.496300 prevents 1 6 1 5 12 1356 1498 59 30 96.969414 any5 1 6 1 5 13 1425 1490 98 30 96.874939 futures 1 6 1 5 14 1535 1488 129 31 96.577095 attacks.5 1 6 1 5 15 1675 1486 75 30 96.840164 With5 1 6 1 5 16 1761 1485 53 30 96.975739 thea 1 6 1 6 0 468 1526 1442 50 -1 5 1 6 1 6 1 468 1544 248 32 71.696770 InternetALERT5 1 6 1 6 2 728 1543 69 30 85.753624 built5 1 6 1 6 3 809 1543 26 29 96.888580 in5 1 6 1 6 4 848 1540 112 31 85.183784 ‘Attacks 1 6 1 6 5 973 1538 77 37 66.502937 Log’,5 1 6 1 6 6 1063 1544 61 31 96.693680 you5 1 6 1 6 7 1133 1537 62 29 96.790291 cans 1 6 1 6 8 1208 1535 88 30 96.971649 knows 1 6 1 6 9 1305 1534 54 30 96.478828 thes 1 6 1 6 10 1371 1533 82 34 96.150597 date,5 1 6 1 6 11 1466 1532 79 33 96.579056 time,5 1 6 1 6 12 1560 1530 33 30 96.961891 IP5 1 6 1 6 13 1604 1528 148 34 93.717941 Address,5 1 6 1 6 14 1766 1527 60 30 96.796822 ands 1 6 1 6 15 1841 1526 69 30 96.768875 Port4 1 6 1 7 0 468 1578 1436 45 -1 5 1 6 1 7 1 468 1588 133 31 96.112373 Numbers 1 6 1 7 2 612 1586 80 31 96.849945 used5 1 6 1 7 3 705 1586 38 37 96.753937 by5 1 6 1 7 4 754 1585 53 30 97.003998 thes 1 6 1 7 5 822 1582 128 31 96.818008 Intruder5 1 6 1 7 6 961 1581 27 30 96.817955 in5 1 6 1 7 7 1000 1581 53 29 96.817955 thes 1 6 1 7 8 1064 1578 111 40 96.891678 attack.5 1 6 1 7 9 1836 1589 68 6 0.301147 ve.2 1 7 0 0 0 470 1669 1462 96 -1 3 1 7 1 0 0 470 1669 1462 96 -1 4 1 7 1 1 0 470 1669 1462 63 -1 5 1 7 1 1 1 470 1690 56 29 96.523232 For5 1 7 1 1 2 536 1696 20 36 96.085480 a5 1 7 1 1 3 569 1688 105 30 95.624504 limited5 1 7 1 1 4 686 1687 82 33 96.883179 time,5 1 7 1 1 5 780 1692 60 30 96.587952 you5 1 7 1 1 6 853 1690 70 30 96.179329 may5 1 7 1 1 7 936 1689 67 23 96.885765 now5 1 7 1 1 8 1016 1679 161 32 96.745720 download5 1 7 1 1 9 1189 1678 61 30 96.267746 ands 1 7 1 1 10 1263 1678 74 29 96.267746 starts 1 7 1 1 11 1349 1675 162 38 96.945160 protecting5 1 7 1 1 12 1525 1671 134 40 69.753845 yourself5 1 7 1 1 13 1669 1671 121 36 96.650543 against5 1 7 1 1 14 1803 1669 129 30 96.685806 Internet4 1 7 1 2 0 470 1713 1258 52 -1 5 1 7 1 2 1 470 1731 155 30 96.313202 Attackers5 1 7 1 2 2 636 1729 46 30 96.962128 for5 1 7 1 2 3 693 1728 69 37 96.914536 only5 1 7 1 2 4 774 1726 61 34 96.831367 $495 1 7 1 2 5 848 1732 54 31 96.796242 pers 1 7 1 2 6 912 1724 83 37 96.911743 year!5 1 7 1 2 7 1007 1723 83 30 93.305984 Yours 1 7 1 2 8 1101 1719 248 32 85.513184 InternetALERT5 1 7 1 2 9 1362 1716 206 37 96.312477 Subscriptions 1 7 1 2 10 1581 1713 147 30 90.936378 includes:2 1 8 0 0 0 472 1828 545 121 -1 3 1 8 1 0 0 472 1828 545 121 -1 4 1 8 1 1 0 472 1828 427 34 -1 5 1 8 1 1 1 472 1849 11 6 91.625000 -5 1 8 1 1 2 497 1834 12 28 92.529549 15 1 8 1 1 3 528 1833 57 29 92.529549 Full5 1 8 1 1 4 597 1833 81 28 96.663307 Years 1 8 1 1 5 688 1830 33 30 97.004189 of5 1 8 1 1 6 732 1828 167 31 96.983673 Protection4 1 8 1 2 0 473 1868 544 42 -1 5 1 8 1 2 1 473 1891 11 5 77.498322 -5 1 8 1 2 2 496 1876 19 27 77.498322 75 1 8 1 2 3 528 1875 59 35 96.618973 days 1 8 1 2 4 599 1882 19 21 96.766891 a5 1 8 1 2 5 628 1873 90 29 96.766891 weeks 1 8 1 2 6 728 1870 149 31 96.798798 technical5 1 8 1 2 7 890 1868 127 36 96.852776 support4 1 8 1 3 0 473 1909 529 40 -1 5 1 8 1 3 1 473 1932 12 5 92.259003 -5 1 8 1 3 2 498 1916 106 29 96.107353 Futures 1 8 1 3 3 617 1913 241 36 93.265808 Developments5 1 8 1 3 4 870 1926 11 5 93.265808 -5 1 8 1 3 5 894 1909 108 30 96.829163 FREE!2 1 9 0 0 0 475 2005 847 43 -1 3 1 9 1 0 0 475 2005 847 43 -1 4 1 9 1 1 0 475 2005 847 43 -1 5 1 9 1 1 1 475 2018 107 29 96.736458 You're5 1 9 1 1 2 595 2025 67 21 96.923294 now5 1 9 1 1 3 675 2016 131 29 96.882042 minutes5 1 9 1 1 4 819 2019 86 29 96.375923 away5 1 9 1 1 5 915 2011 75 29 96.985435 from5 1 9 1 1 6 1004 2008 165 39 96.661392 protecting5 1 9 1 1 7 1180 2005 142 39 54.303520 yourself!2 1 10 0 0 0 472 2092 1252 252 -1 3 1 10 1 0 0 472 2092 1252 252 -1 4 1 10 1 1 0 472 2092 1252 252 -1 5 1 10 1 1 1 472 2092 1252 252 95.000000 2 1 11 0 0 0 955 2360 595 69 -1 3 1 11 1 0 0 955 2360 595 69 -1 4 1 11 1 1 0 955 2360 595 37 -1 5 1 11 1 1 1 955 2366 137 31 96.550934 Copyrights 1 11 1 1 2 1099 2365 26 24 96.761429 ©5 1 11 1 1 3 1132 2364 68 25 93.087860 20035 1 11 1 1 4 1211 2360 339 34 92.253944 MyConsumerGuide.com4 1 11 1 2 0 1110 2397 285 32 -1 5 1 11 1 2 1 1110 2401 35 24 76.900764 All5 1 11 1 2 2 1156 2399 88 30 96.784348 Rights5 1 11 1 2 3 1253 2397 142 26 96.063972 Reserved.2 1 12 0 0 0 56 3190 2403 80 -1 3 1 12 1 0 0 56 3190 2403 80 -1 4 1 12 1 1 0 56 3190 2403 80 -1 5 1 12 1 1 1 56 3201 1091 69 36.145420 http://www.myconsumerguide.com/intemet_alert.htm5 1 12 1 1 2 2296 3190 163 55 24.479324 5$/5/200: EXHIBIT C gurenr ALERT Protect Your PC fram internat Attackers! Si May Be Breaking Into Your Ci p Right Now (SEE BELOW.) Your computer's address is: 65.205.42.34. Every time you browse the Intemet, send e-mail, or submit any private information to a web site, you broadcast your computer's uniqua IP Address ovar ihe intemet. With thie IP address, someone can immediately begin trying to break into your computer without you evan knowing it! Until new, thera has been no way of telling if this has happened or any way of stopping it? Well not anymorel Steal Online Banking Information| Delete files from your computer! InternetALERT is an invaluable too! for you and your sysiem. It will notify you if someone is trying to break in to your computer, stop ham dead in their tracks, and even build a visual map showing you the Attacker's ISP {Internet Service Provider} allowing you to visually see where they are located and report them! You can now browse the Intemet with the comfort and sacurity of knowing that no one from the internet can access your computer without your knowledge or permission! I's Easy...

IntemetALERT is gasy-to-user Once installed, you can go about your work without a worry. It runs silently in the background protecting you. Every time you tum on your computer, InternetALERT starts working automatically, only leaping into action whan suspicious connection altempis ara made to your computer. ceva m A878 02 Ms Po orm, ™ pont ane P Bee war YOUR CCUMUTERS ADOMESSIS: 65.206 42.34 ri —ateF Eee rey ee Map Aamch orn OP Leaztion:

on Ten ew EXHIBIT D InternetALERT Page 1 of 2 ‘Protect Your PC from Internet Attackers! Your Computer's Data Is At Risk! Every time you connect to the Internet, send e-mail, or submit any private information to a web site, you broadcast your computer's unique IP Address over the Internet. With this IP address, someone can immediately begin trying to break into your computer without you even knowing it! Until now, there has been no way of telling if this has happened or any way of stopping it! Well not anymore! What Can Happen To Me? Steal Your Credit Card & Personal Information! Read Your E-Mail! Plant a Virus or Worm! Steal Online Banking Information! Delete files from your computer! InternetALERT is an absolute MUST for anyone connecting to the Internet! It will notify you if someone is breaking into your computer, stop them dead in their tracks, and even build a visual map showing you the Attacker's ISP (Internet Service Provider) location! You can now connect to the Internet with the comfort and security of knowirig that no one from the Internet can access your computer without your knowledge or permission! It's Easy...

InternetALERT is easy-to-use! Once installed, you can go about your work without a worry. It runs silently i in the background protecting you. Every time you turn on your computer, InternetALERT starts working automatically, only leaping into action when suspicious connection attempts are made to your computer. Locate Attackers Even When You're Gone... InternetALERT is more than just protection against Internet Intruder's, it allows you to track down your Intruder’s ISP (Internet Service Provider) contact information and report the attack. This allows you to contact the Intruder's ISP and make them aware that someone on their network has tried to attack your computer. In most cases, they have the power to find out who the Intruder is and prevent any future attacks. With the InternetALERT built in ‘Attack Log’, you can know the date, time, IP Address, and Port Number used by the Intruder in the attack.

Viap Attacker's isp Location:

“Ff location, allowing you to see where your attacker came from! This allows you to see where in the . world your attacker is located. NOTE: This is a map of the ISP (Internet Service Provider) that : the attacker is using to get their Internet access. http://www.deals-and-links.com/internetalert.htm 7/3/2003 InternetALERT Download & Protect Yourself Against Internet Attackers Now - $49 (1 Year Subscription.) System Requirements:

e 8MB of RAM, 5MB of Free Disk Space.

e Windows 95, 98, 2000, NT, ME, XP Click here to get your InternetALERT ‘Hp Exclusives! | OVD200e External 4.7G8 Writer? Copyright © 2002 http://www.deals-and-links.com/internetalert.htm Page 2 of’ 7/3/2003 EXHIBIT E- BONZI.COM Secure Purchase Form Page | of 1 InternetALERT. Security Service Make Your Computer Safe & Secure In 5 Minutes... Your InternetALERT Subscription includes: e 1 Full Year of Protection e 7 day a week technical support e Future Developments - FREE! You're now minutes away from protecting your system against malicious attackers! Simply complete the secure form below and then press the ‘Protect’ button. You will be granted immediate access to the full version of InternetALERT and in minutes make your computer safe and secure against Internet attackers! First Name:

Last Name:

Credit Card Number: Card Number only, No spaces or dashes. Card Expiration Date: Month / Year Cardholder's Name:

Exactly as it appears on your credit card Card Verification Number: | CW2/CVC2 number, 3 or 4 digits, See Examples —>> Billing Street Address: Address that appears on your credit card statement Visa, MC, Discover: 3 digits on back of card Billing Zip/Postal Code: Zip/Postal code that appears on your credit card statement | E-Mail Address: Please supply a valid, current Email Address | : Total: $49.00 (annual fee) | Special Pricing is guaranteed through the end of 7/3/2003. Please Note: For uninterrupted if Summary: service at the end of your subscription, you'll be automatically renewed at your current American Express: 4 digits on front of card discounted rate (billed to the credit card we have on file). if you wish, you may change your automatic renewal status at anytime.

Windows, Microsoft Internet Explorer, and Microsoft are registered trademarks of Microsoft Corporation. internetALERT Security Service and BONZI are trademarks of BONZI Software, Inc. All rights and liabilities with respect to internetALERT Security Service belong solely to BONZI Software, Inc. Copyright © 1995 - 2003 - All Rights Reserved. https://secure.bonzi.com/products/index.asp | 7/3/2003 EXHIBIT F depJozay 9 yWBeus PISPWE7y ; FI'T ane], arynydnyase| apeds wes — jensiA sasyow a | ait, “wagnduo> Ada SUB AIRASLIOY geiedo = - S'S SIS | “gpa}0ld axaoy7ab UG Beauty UOV0K 1S ea, s8e|d OMIPN AW Janndwios Ald es, 's1)9-8/qNOG addagndoy | VOLUME 138 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The respondents, their attorneys, and counsel for the Federal Trade Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondents that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days for the receipt and consideration of public comments, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order: 1. Respondent Bonzi Software, Inc. is a privately held Delaware corporation with its principal office and place of business located at 3000 Broad Street, Suite 115, San Luis Obispo, California 93401.

VOLUME 138 Decision and Order 2. Respondents Joe Bonzi and Jay Bonzi are owners and officers of Bonzi Software, Inc., and formulate, direct, and control the acts and practices of the corporation. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER DEFINITIONS For purposes of this order, the following definitions shall apply: 1. “Personally identifiable information” or “personal information” shall mean individually identifiable information from or about an individual consumer including, but not limited to: (a) a first and last name; (b) a home or other physical address, including street name and name of city or town; (c) an email address or other online contact information, such as an instant messaging user identifier or a screen name that reveals an individual’s email address; (d) a telephone number; (e) a social security number; (f) an Internet Protocol (“IP”) address or host name that identifies an individual; (g) a persistent identifier, such as a customer number held in a “cookie” or processor serial number, that is combined with other available data that identifies an individual; or (h) or any information that is combined with (a) through (g) above.

2. Unless otherwise specified, “respondents” shall mean Bonzi Software, Inc., its successors and assigns and its officers, agents, representatives, and employees, and Joe Bonzi and Jay Bonzi. 3. “Commerce” shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44.

VOLUME 138 Decision and Order I.

IT IS ORDERED that respondents, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, packaging, labeling, advertising, promotion, offering for sale, sale, or distribution of InternetALERT or any other computer software product or service that is marketed as enhancing security, in or affecting commerce, shall not misrepresent:

A. the extent to which any such product or service will reduce the risk of unauthorized access into such computer, or any such similar system; or B. the extent to which any such product or service will maintain, protect, or provide security features that will enhance the security or privacy of any such computer (or any such similar system) or any data, that is stored in a computer, or any similar system, including personally identifiable information.

II.

IT IS FURTHER ORDERED that respondents, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, packaging, labeling, advertising, promotion, offering for sale, sale, or distribution of any computer software product or service that is marketed as enhancing the security or privacy of any computer or similar system, in or affecting commerce, shall not misrepresent the performance, benefits, or efficacy of any such software product or service.

III.

IT IS FURTHER ORDERED that respondents shall provide refunds as follows:

VOLUME 138 Decision and Order A. Respondents shall send, within seven (7) days from the date of service of this order, to the last known e-mail address of each current subscriber of the InternetALERT software product exact copies of the “Refund Notification Message,” with the subject line “Important Refund Notice Concerning Your InternetALERT Subscription,” attached hereto as Attachment A. Respondents shall not include with Attachment A any other information, nor shall any other material be transmitted with Attachment A. Respondents shall give subscribers who receive Attachment A pursuant to this Part sixty (60) days to respond.

B. Respondents shall use all reasonable commercially available means to obtain updated e-mail addresses for any returned e-mails within fifteen (15) days of receipt of such returned e-mail and shall resend Attachment A within seven (7) days of obtaining a new e-mail address for the recipient. Respondents shall not include with Attachment A any other information, nor shall any other material be transmitted with Attachment A. Respondents shall give subscribers who receive a resent Attachment A pursuant to this Part sixty (60) days to respond.

C. Respondents shall post within seven (7) days of service of the order and, continuing for sixty (60) days maintain, on the Bonzi Software homepage, www.bonzi.com, a hyperlink to a notice in the form and format as Attachment A. Such hyperlink shall be clear and conspicuous, labeled “InternetALERT Refund Notice,” and lead directly to the notice on the click-through electronic page or other display screen or panel. Respondents shall give current subscribers who receive notice of the refund through the Bonzi Software homepage, www.bonzi.com, the opportunity to respond within sixty (60) days from the date of posting the notice required by this Part. VOLUME 138 Decision and Order D. Within seven (7) days of receiving a request for a refund, respondents shall provide current subscribers who cancel and uninstall the InternetALERT software product either (a) a check drawn on U.S. funds; or (b) a credit card refund for an amount representing the unused portion of their InternetALERT subscription calculated as of the date of acceptance of this order by the Commission for public comment. For current subscribers who request a refund by check, respondents shall mail refunds by first class mail to the physical address provided by the subscriber or, if no address is provided, to the subscriber’s last known physical address.

IV.

IT IS FURTHER ORDERED that respondents shall, within seven (7) days after the date of service of this order, send by email exact copies of the order to any retailer, affiliate, or other third party that advertises, promotes, offers for sale, sells, or distributes the software product InternetALERT pursuant to an agreement with respondents.

V.

IT IS FURTHER ORDERED that respondents shall, for a period of five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in their possession or control that contradict, VOLUME 138 Decision and Order qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations. VI.

IT IS FURTHER ORDERED that respondents shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities relating to the subject matter of this order. Respondents shall deliver this order to such current personnel within thirty (30) days after the date of service of this order, and to such future personnel within thirty (30) days after the person assumes such position or responsibilities.

VII.

IT IS FURTHER ORDERED that respondent Bonzi Software, Inc., and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including, but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580.

VOLUME 138 Decision and Order VIII.

IT IS FURTHER ORDERED that respondents Joe Bonzi and Jay Bonzi for a period of ten (10) years after the date of entry of this order shall notify the Commission of: (1) the discontinuance of their current business or employment; and, (2) their affiliation with any new business or employment. The notice shall include respondents’ new businesses names, addresses, and telephone numbers and a description of the nature of the business or employment and the respondents’ duties and responsibilities. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580.

IX.

IT IS FURTHER ORDERED that respondents shall within one hundred and twenty (120) days after service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order. As part of this compliance report, respondents shall describe the consumer redress program conducted pursuant to Part III of this order. This description shall include sample copies of notifications provided to subscribers pursuant to Part III of this order and separate lists identifying (a) the name, e-mail, and physical address, and refund amount for each subscriber who was a current subscriber as of the date of service of this order; and (b) the total number of current subscribers to whom e-mail notices were sent pursuant to Part III of this order. X.

This order will terminate on October 7, 2024, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any VOLUME 138 Decision and Order violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years;

B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondents did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal. VOLUME 138 Decision and Order ATTACHMENT A E-MAIL NOTIFICATION TO CURRENT SUBSCRIBERS OF INTERNETALERT SUBJECT LINE: Important Refund Notice Concerning Your InternetALERT Subscription Dear [Recipient’s name]:

You may be eligible to receive a partial refund from Bonzi Software, Inc. for your InternetALERT subscription. Bonzi recently settled a dispute with the Federal Trade Commission concerning its advertisements for the InternetALERT software product. The FTC charged that InternetALERT does not significantly reduce the risk of unauthorized access into computers and the information that is stored in them because it provides only limited protection against intrusion into computers. As part of the settlement, Bonzi agreed to offer to current subscribers who cancel their InternetALERT subscriptions a refund for the amount representing the unused portion of their subscriptions.

In settling the case, Bonzi has not admitted any wrongdoing or violation of law. Nonetheless, to resolve this matter, we have agreed to discontinue making the challenged claims in the complaint and offer refunds to current subscribers. To cancel and obtain a refund, you must respond to this e-mail by [date 60 days from receipt of e-mail] with a request that your InternetALERT subscription be cancelled. Bonzi will automatically credit the amount of the refund to the credit card that you used to pay for your InternetALERT subscription. If this credit card is no longer active or was renewed since you paid for your InternetALERT subscription, include with your cancellation request a mailing address to which a refund check may be sent. VOLUME 138 Decision and Order For more information about the FTC’s settlement with Bonzi and protecting your computer, visit the web site [Link to FTC’s press release].

VOLUME 138 Analysis Analysis of Proposed Consent Order to Aid Public Comment The Federal Trade Commission has accepted, subject to final approval, an agreement containing a consent order from Bonzi Software, Inc., Joe Bonzi, and Jay Bonzi (“respondents”). The proposed consent order has been placed on the public record for thirty (30) days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement or make final the agreement’s proposed order.

This matter involves the advertising and promotion of Bonzi InternetALERT software. According to the FTC complaint, the respondents represented that Internet ALERT significantly reduces the risk of unauthorized access into computers and the data stored in them. The FTC alleges that in fact InternetALERT does not significantly reduce this risk. The proposed consent order contains provisions designed to prevent the respondents from engaging in similar acts and practices in the future.

Part I.A. of the order prohibits the respondents from misrepresenting the extent to which InternetALERT or any other software product or service that is marketed as enhancing security will reduce the risk of unauthorized access into a computer. Part I.B. also prohibits the respondents from misrepresenting the extent which any such product or service will maintain, protect, or provide security features that will enhance the security or privacy of any computer, or any data that is stored in a computer, including personally identifiable information. VOLUME 138 Analysis Part II prohibits the respondents from making any misrepresentations concerning the performance, benefits, or efficacy of any computer software product or service that is marketed as enhancing security or privacy. Part III of the order requires respondents to pay refunds to current InternetALERT subscribers who opt to cancel their subscriptions. Subscribers who cancel their subscriptions will receive from the respondents a refund that represents the unused portion of their InternetALERT subscription. Part IV of the proposed order would require respondents to notify their retailers, affiliates, and similar third parties that advertise, promote, or sell InternetALERT to discontinue making any of the claims prohibited by the order.

Parts V though IX of the order require respondents to keep copies of relevant advertisements and materials substantiating the claims made in the advertisements; to provide copies of the order to certain of their current and future personnel; to notify the Commission of changes in corporate structure; and to file compliance reports with the Commission. Part X provides that the order will terminate after twenty (20) years under certain circumstances.

The purpose of this analysis is to facilitate public comment on the proposed order, and it is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms.

VOLUME 138 Complaint