Even if they had said it all along in their FAQ, it's still infuriatingly disingenuous for someone to act as if anyone ever browses to Hola's site and reads their FAQ either before or after installing the Hola malware extension. No ordinary person will ever do this.
What happens is that someone who has already installed Hola, and who is ignorant by design as to what the extension actually does, tells a friend about Hola; the friend installs it, sees the expected functionality, is unaware of the malicious functionality, and the pyramid of ignorance continues to grow after he tells his own friends about how great Hola is.
These few sentences written in the sidebar here [1] are all that at least 7,102,584 of Hola's victims ever saw (judging by the install count for this malicious Chrome extension):
Access websites blocked in your country, company or school with Hola! Hola is free and easy to use!
FREE and secure VPN. Access websites blocked or censored in your country, company or school and stream media with the free Hola Unblocker VPN proxy service.
Hola is a free and ad-free VPN proxy service that provides a faster and more open Internet.
At no point do they attempt to make it clear in the slightest that they turn your browser into a for-profit bot net node, nor that your own browser becomes a proxy for others. In all venues where Hola expects 99.9% of interested parties to see their product pitch, they intentionally convey the false impression that they personally own their own VPN proxy backends.
Aside from all of that, hiding an explanation of your malware's behavior in the FAQ on some website no one ever sees doesn't suddenly transform it into normal, respectable software. Malware is malware, and bot nets are bot nets.
This is yet another criminal enterprise allowed to flourish and fester simply because Google refuses to police browser extensions in the Chrome web store.
Google runs what I assume must be the largest de facto Universal XSS exploit breeding ground in the world (Chrome extensions in the Chrome web store), and yet they refuse to police its contents.
Here's a recent example. I run AdSense on my site, and it kept running the same ad for an atrocious web game that a 10 year old could have made as their first programming project. I eventually saw the exact same ad running on another site, so I clicked it there in order to avoid the absurd rule that clicking ads on your own site gets you banned from AdSense. (Why don't they just silently discard those clicks, since they know they are from the publisher?) Clicking the ad took me to a page which did not have a game at all; it just falsely claimed you could play a game if you installed their malware browser extension, which it immediately prompted me to install [2]. The extension actually has nothing whatsoever to do with games. It doesn't enable you to play a game at all, anywhere. All it does is replace ads across the entire web with ads from its own ad network for the remainder of the lifetime of that computer. The extension has millions of installs and probably causes Google to lose seven figures per year in AdSense revenue due to so many AdSense ads being replaced with ads from another network. I also think it's funny that ads were being run on my site for the specific purpose of installing malware that would replace the ads and destroy the ad revenue for the very same site that helped it get installed in the first place. I reported this extension three times using the official report forms for the directly relevant teams at Google (even explaining in detail how it damages their own AdSense platform, so unlike a typical consumer complaint, this was actually affecting their profits and they should listen for once), and I was consistently ignored.
1. https://chrome.google.com/webstore/detail/hola-better-intern...
2. http://i.imgur.com/8JJVjZ2.png