Major advertisers caught in spyware net
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Big-time online advertising is built on layers: A big advertiser, such as a Fortune 500 company, directs an agency to handle a campaign. The agency then farms that message out to specialists in various media, which can include spyware and adware purveyors.
"We do everything we can to make sure our partners adhere to our standards," said Jeffrey Citron, Vonage's chief executive.
Yet a pop-up ad for Vonage appeared in a screen shot that Spitzer used in his case against Intermix. Citron said he was unaware of the ad and promised to look into it, as he said the company does with similar complaints.
Mercedes-Benz says its ad was carried to hard drives last year by an agency it has since fired, while computer maker Dell USA has fired "a handful" of affiliates for carrying Dell's coupons and ads over adware.
"This is not a practice we condone," said Dell spokeswoman Jennifer Davis.
Dave Methvin, chief technology officer with tech diagnostic site PC Pitstop, said problems are no surprise given the many layers involved, but big advertisers have the clout to stop them.
"If you're going to be a good corporate citizen, part of your responsibility is to make sure that kind of thing doesn't happen rather than to say it's three levels down," Methvin said. "If a big company advertising on the Internet makes all of its suppliers down the chain sign a statement (and agree to penalties for breaking the rules), quickly the problem would go away."
It's not just big advertisers who have ties to spyware and adware.
Yahoo Inc. made a deal with adware company Claria Corp., formerly known as Gator Corp., to provide search listings for its SearchScout toolbar. The popular search engines Ask Jeeves and Google also benefit from adware, says Internet researcher Benjamin Edelman.
He says an Ask Jeeves toolbar generates ads without users' full consent, while Google's search listings appear in queries made through a questionable third-party toolbar. Ask Jeeves and Google officials dispute Edelman's account and say they don't use any spyware or adware. Company policy bans the use of adware by Google, said spokesman Barry Schnitt.
Several states have adopted anti-spyware bills, and the U.S. House approved two in May that carry jail sentences of up to five years in prison. The bills, which don't target advertisers, are now before the Senate, where similar legislation died last year.
While Spitzer and some lawmakers in Alaska, Pennsylvania and Utah say advertisers should also be held accountable, not everyone agrees.
"So many people have such antipathy toward adware and spyware vendors that it blinds them to the underlying legal principles," said Eric Goldman, a cyber law professor at Marquette University.
He said any liability would be unprecedented and would be akin to holding an advertiser responsible for libel by the newspaper in which the ad appears.
Some advertisers defend the practice.
"It is just a marketing tool that we use," said Expedia spokesman David Dennis.
Expedia, like many other adware users, insists it has rigorous standards and checks to make sure customers want their ads and can easily remove the software if they don't. Dennis said the company works closely with its ad agencies to make sure.
Melinda Tiemeyer, spokeswoman for Sprint PCS, said Internet users have clicked on ads delivered by adware, meaning they find them useful. Sprint is OK with using adware because users, she said, accept it in exchange for phone service offers and discounts.
But other advertisers including Netflix Inc. and Verizon Communications Inc. have changed their attitudes.
"I think it was more of a realization that this was becoming more of a concern in consumers' eyes and there was a growing level of frustration," said John Bonomo of Verizon, which discontinued adware last July. Still, "it was effective," he said.
"Clearly folks are uncomfortable about it," Edelman said. "Everyone knows that everyone hates pop-ups ... eventually companies just got embarrassed, especially when they get on your computer through this kind of trickery."
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