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Online Advertiser Settles With FTC

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The Federal Trade Commission has reached an agreement with Adteractive, an online advertising company, for its use of misleading spam emails and online advertising to attract people to its Web sites.

The settlement, filed by the Department of Justice on behalf of the

When people went to the promotional Web sites, they found out that the items were not free, said Stephen Cohen, senior attorney for the FTC. "Some of the offers that they presented to consumers required consumers to spend money," he said. Other offers asked visitors to apply for credit cards, qualify for the cards, and use them.

The FTC began investigating Aderactive in April 2006, after receiving complaints from consumers, Cohen said. The company agreed to the settlement and the judge signed the order on November 27.

Commissioner Jon Leibowitz said he was concerned that "the civil penalty that Adteractive must pay is a downward departure from our other CAN-

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