NAD Finds CyberDefender Acted Properly in Discontinuing All Advertising at Issue in NAD Inquiry

Broadcast, Internet Advertising Claims Challenged by Ascentive

New York, NY – April 26, 2012 – The National Advertising Division has determined that CyberDefender Corporation has taken necessary and proper action in discontinuing all advertising claims challenged before NAD by Ascentive, LLC.

NAD is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus.

NAD requested that the advertiser provide substantiation for claims that included:

• “DoubleMySpeed.com”
• “DoubleMySpeed Registry Cleaner”
• “DoubleMySpeed.com PC Optimization Software”
• “Are the commercial’s claims true that [DoubleMySpeed] software can actually double the speed of your computer?  Take a moment and listen to the DoubleMySpeed audio review by Dale Powell (aka the SpywarePreventionGuy) and decide for yourself.”
• “Using DoubleMySpeed you can always expect your computer to execute commands and programs faster and easier.”

At the outset of NAD’s inquiry, the advertiser responded that the company had filed for relief under Chapter 11 of the U.S. Bankruptcy code and was engaged in reorganization. The advertiser asserted that it had discontinued all advertising for “DoubleMySpeed,” closed the DoubleMySpeed.com website and redirected all traffic for that website to another of the company’s websites.

NAD noted in its decision that an advertiser’s Chapter 11 filing does not deprive NAD of jurisdiction. However, NAD was satisfied with the advertiser’s written assurance that the advertising in question, including the name of the software product (DoubleMySpeed) as well as the website domain name (DoubleMySpeed.com), had been permanently discontinued – an action that NAD considered both necessary and proper.

NAD considered, but was not persuaded by the challenger’s contention that the advertiser had not discontinued all advertising because CyberDefender continued to redirect web traffic from DoubleMySpeed.com to CyberDefender’s other websites.

Rather, NAD was persuaded by the advertiser’s explanation that redirecting web traffic from DoubleMySpeed.com to CyberDefender’s other active websites is necessary so that consumers who have previously licensed the DoubleMySpeed software available on the old “DoubleMySpeed” website still have a way to reach the company.

NAD noted that the alternative CyberDefender websites which now receive the DoubleMySpeed.com traffic do not use the challenged speed-doubling claims at issue here.  However, NAD noted that the redirection of traffic from DoubleMySpeed.com is a temporary solution and therefore should also be discontinued after a reasonable period of time.

NAD also considered the challenger’s assertion that CyberDefender continues to advertise the DoubleMySpeed software on other websites. The advertiser confirmed in writing that the sites at issue are not paid for or controlled by CyberDefender, but by third parties to which CyberDefender has no connection.

Given the advertiser’s assurances that the advertising at issue has been permanently discontinued, NAD concluded that no further action was required.

CyberDefender, in its advertiser’s statement, said the company “appreciates NAD’s decision to take no action in this matter and its acceptance of the Company’s representation that the advertising in question has been discontinued and that the “doublemyspeed.com” website has been closed down.”