Adware Called Too Cozy With Spyware

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WASHINGTON -- Even if Congress passes an anti-spyware bill, it will be ineffective unless lawmakers can untangle the frustratingly complex adware food chain. Absent that, spyware hustlers will be able to dodge liability through their murky deals with advertising affiliates.

Ari Schwartz, associate director of the Center for Democracy and Technology, told the Senate Commerce Committee today that the spyware problem must be addressed at the root level of affiliate marketing.

''The affiliate issue has become a central aspect of the spyware epidemic,'' Schwartz said. ''Finding ways to effectively reform affiliate relationships will remove a linchpin of spyware purveyors' operations.''

Both the Senate and the House are considering anti-spyware legislation that makes it illegal to install software on a computer without the authorized user's express consent. Both bills contain a long list of exemptions, including pre-purchase installations, cookies and software and network security upgrades.

The bills prohibit phishing, keystroke logging, homepage hijacking and ads that can't be closed, except by shutting down a computer. They also require an opt-in notice and regime for legal software (i.e. adware) that collects personally identifiable information from consumers.

Despite the proposed requirements on adware companies, such as WhenU and Claria (the former Gator), Schwartz said it isn't enough.

''Deceptive and often clearly illegal software download practices are a regular part of the business of many American companies operating in online commerce,'' he said. ''These practices are funded and 'incentivized' through poorly policed download commission programs ... that, in turn, are funded by large, mainstream advertisers.''

He added, ''The entire process is sustained through a nearly impenetrable web of affiliate relationships that is used to deflect accountability and frustrate law enforcement.''

The end result, according to Schwartz, is when unauthorized pop-up ads appear on a user's computer, the ads will be ''many steps removed'' from the advertiser who originally paid for the ad.

''Many of the companies involved, particularly the advertisers, have no idea what is going on,'' Schwartz said.

This article was first published on internetnews.com. To read the full article, click here.

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