Zango, (also letter case 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 placed on their computers. Zango software is listed as adware by Symantec, and is also labeled as a potentially unwanted program by McAfee. Zango was co-founded by two brothers: Keith Smith, who served as the CEO; and Ken Smith, who served as the CTO.
In April 2009 Zango ceased trading after its banks foreclosed. However, , 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." It provided targeted advertising in return for partner companies' content such as sports, comedy, dance, erotic videos, online games, and screensavers.zango.com – Tags: Popular – All Time Warner Bros. 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.
Undesirable software behaviors StopBadware.org lists a number of undesirable behaviors associated with Zango Easy Messenger, including "behaves as spyware", "automatically runs on startup", "displays pop-up advertisements", "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 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 YouTube. 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 from Zango Cash."
A more detailed analysis of this attack, according to one website, is that "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.
Zango software is listed as adware by Symantec. Computer security company McAfee said in 2005 "this program may have legitimate uses", but described it as a "potentially unwanted program" and an "adware downloader." Automated analysis by McAfee SiteAdvisor in May 2008 reports "629 red downloads" and that during testing, McAfee "found downloads on this site that some people consider adware, spyware or other potentially unwanted programs."Site Advisor retrieved May 17, 2008.
History 1999–2001: Pay-to-surf model Keith and Ken Smith, the CEO and CTO respectively, founded ePIPO in 1999. It was one of the first "pay-to-surf" companies, following in the footsteps of AllAdvantage. 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 in 2001. The company, which changed its name to 180solutions, adjusted their technologies in several ways: To show pop-up ads rather than banner ads. To not have any visible GUI. To be bundled with other potentially valuable applications.
2002–2005: Distribution via other programs From 2002 to 2005, 180solutions' applications—such as 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 freeware 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 and spyware 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.The Effect of 180solutions on Affiliate Commissions and Merchants Benjamin Edelman October 20, 2004 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 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. In March, they acquired one of their distribution partners, a Canadian company called CDT (dba LoudCash, giving them direct visibility into and greater control of many of the formerly "third party" distributors. In June, 180solutions 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. By August, they had filed suit against seven individuals alleged to have illegally distributed its software using a botnet. In November, 180solutions announced an ongoing partnership with the FBI in breaking up a botnet ring in the Netherlands. In December, the company ended distribution of the 180SearchAssistant and closed LoudCash, a remnant from the CDT acquisition.
2006–2008: Downsizing Despite the initiatives of 2005, 180solutions admitted that it was possible for malicious parties to hack their install routines and thus cause fraudulent installs.Mea Culpa 180Solutions 5:33 PM, February 23, 2006 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.Non-consensual 180 Installations Continue, Despite 180's "S3" Screen Benjamin Edelman February 24, 2006
In early 2008, security researchers at Fortinet reported, incorrectly, that the rapidly spreading Facebook widget "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 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.Casualties: Zango's recent layoffs include senior execs Alex Eckelberry June 17, 2008 On December 15, 2008, Zango closed their Tel Aviv office, which had been the Hotbar headquarters before Hotbar and 180solutions merged, thereby laying off another 50 employees.
2009: Closure 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 reported that Zango had become defunct. A spokesman for video search engine company Blinkx said that although Blinkx had purchased some of Zango's technical assets such as servers, Zango was shut down after the consortium foreclosed.Notorious adware vendor Zango shuts its doors , Computerworld 100% 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." While technically true, the majority of Zango employees were immediately hired by Blinkx. 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. This corporation was 100% owned by Blinkxpay-per-install.org: Zangocash is now Pinball Publisher Network
Litigation Federal Trade Commission charges and settlement On January 23, 2006, a public advocacy group filed two official complaints with the Federal Trade Commission. The Center for Democracy and Technology complaints charged 180solutions with engaging in unfair and deceptive business practices, deliberately duping Internet users into downloading intrusive advertising software.CDT Files Complaints Against Major Adware Distributor (archived) January 27, 2006 – archived, original location: