Yahoo Called Spyware Pusher in Lawsuit

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Anti-spyware activist Bed Edelman is leading a new round of charges that search and portal player Yahoo deployed clickfraud with the help of spyware in its dealings with Web advertising clients.

The portal giant has been slapped with a class action lawsuit spearheaded by Edelman and a mom and pop Web site called Crafts by Veronica.

The plaintiffs allege that Yahoo and its Overture subsidiary engaged in fraud by generating higher pay-per-click payments as a result of ''Syndication Fraud'' schemes, otherwise known as clickfraud in the industry.

According to a the complaint filed May 1st in U.S. District Court in New Jersey, Edelman and the Web site claim Yahoo promised to display their advertisements on other ''highly targeted'' sites, but instead placed the ads in spyware and on sites surfers only reach because of a typo in the URL they entered.

The suit claims that Yahoo breached its contractual duty of dealing in good faith ''by collecting revenues for placements they knew, or reasonably should have known, were illegal as well as violative of their contracts with advertisers.''

A Yahoo spokesperson told Internetnews.com only that Yahoo plans to ''vigorously defend'' its position.

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

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