FTC Settles Case of $40 'Free' Software

After numerous complaints, North Texas entrepreneur Yuri Mintskovsky has agreed to a US$2.1 million settlement that will repay angry Internet consumers. They thought that they were spending just $1.99 or $2.99 for shipping and handling on free software but found credit-card charges of $39.95 or more from his now-defunct Think All Publishing, the Federal Trade Commission said Thursday.

In settling, Mintskovsky admitted no wrongdoing.

Shut Down

His attorney, Diane Letelleir of Dallas, said Mintskovsky's mail-order business, which specialized in open source software and operated out of his Plano, Texas, home, closed "as a result of the preliminary injunction in January 2007," Letelleir said. Her client continues to reside in Texas, but she declined to say where.

Think All, which also operated as Manay, offered antivirus, word-processing, educational, biblical-reference, clip-art and game software.

In 2006, when Dallas resident Alfred Wishart found a $54.02 credit-card charge from Think All, a company representative said he hadn't read the fine print about keeping two CDs beyond a 10-day trial period, which automatically enrolled him in a "membership" program.

No Refund

"This was the first time I was aware of the membership program," Wishart wrote in his signed complaint to the FTC. "Think All did cancel my membership but did not return my $54.02."

Wishart said he hasn't gotten word yet on when he'll see his share of the settlement.

"But, Number 1, it was gratifying seeing my government take clear, good action," said the homeopathic medicine practitioner, who bought open source software that rivals Microsoft (Nasdaq: MSFT) Office.

"I've always been cautious about free offers on the Internet. Now I am going to leave them alone, 100 percent."