State Of New York Sues Major Spyware Distributor

oag.state.ny.us, Oct 11, 2006

Attorney General Eliot Spitzer today sued one of the most elusive internet spyware companies, alleging that the firm surreptitiously installed millions of pop-up ad programs on consumers' computers.

The suit against the Direct Revenue company seeks a court order enjoining the firm from secretly installing spyware or sending ads through already-installed spyware. The suit also asks the court to compel the company to provide an accounting of its revenues and asks the court to impose appropriate monetary penalties.

"Surreptitiously installed spyware and adware harm consumers and businesses, and my office will continue to prosecute these practices aggressively," said Spitzer, whose office last year spurred industry-wide attention to this problem with his suit and settlement against adware distributor Intermix Media. "These applications are deceptive and unfair to consumers, bad for businesses that rely on efficient networks to do their jobs, and bad for online retailers that need consumers to trust and enjoy their online experience. We will continue to side with consumers in their fight for control of their desktops."

The suit follows an extensive investigation in which the Attorney General's office documented Direct Revenue's practice of installing advertising software on computers without proper notice. In many cases, these spyware installations were instigated when Direct Revenue (or one of its distributors) advertised "free" applications (such as games or browser "enhancement" software), omitting reference to the spyware that would accompany any downloaded application. Once consumers downloaded these "free" applications, however, surreptitious code placed on their computers caused Direct Revenue's own servers to install its spyware, without notice to consumers. Read more at ny.us