Sony BMG Settles FTC Charges Over Copy-Protected "Rootkit" CDs

Authored by Mark Hefflinger on January 30, 2007 - 1:38pm.

Washington - Major record label Sony BMG has settled Federal Trade Commission (FTC) charges that it sold CDs containing anti-piracy "rootkit" software that could open consumers' computers to attacks.

The FTC also admonished Sony BMG for not disclosing to consumers that the digital rights management software also limited the devices on which the CDs could be played, restricted the number of copies that could be made, and monitored their listening habits for the purpose of sending them marketing messages.

Under the proposed settlement, Sony BMG must give consumers until July 31, 2007 to exchange copy-protected CDs they purchased, and reimburse them up to $150 for damage caused by the rootkit.

The company is also required to clearly label any copy-protected CDs in the future, and is prohibited from using collected information for marketing.

"Consumers' computers belong to them, and companies must adequately disclose unexpected limitations on the customary use of their products so consumers can make informed decisions regarding whether to purchase and install that content," said FTC chairman Deborah Platt Majoras.

Related Links:
http://www.ftc.gov/opa/2007/01/sony.htm
http://cp.sonybmg.com/xcp/english/updates.html