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Ny Ag Sues Adware Vendor

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#1 TeMerc



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Posted 28 April 2005 - 12:13 PM

Published: April 28, 2005, 9:56 AM PDT
By Matt Hines
Staff Writer, CNET News.com

New York Attorney General Eliot Spitzer filed a lawsuit against Web marketer Intermix Media on Thursday, charging it with being a source of adware and spyware programs that hinder online commerce and security.

Spitzer's office, describing the suit as the "most sweeping case to date involving programs that redirect Web addresses, add toolbars and deliver pop-up ads," said it arose from a six-month investigation of Intermix. The probe found that Intermix was installing advertising software on home computers without informing the owners that it was doing so, Spitzer's office said.

In a statement, Spitzer framed the case as an effort to protect consumer privacy online and to aid businesses operating over the web.

"Spyware and adware are more than an annoyance," he said. "These fraudulent programs foul machines, undermine productivity, and in many cases frustrate consumers' efforts to remove them from their computers. These issues can serve to be a hindrance to the growth of e-commerce."

Full Read @C|NET


Suzi has some more info here, including links to PDF files and snippets from the suit.

Full Read @Spyware Warrior Blog

And Wayne Porter also lends his support to Mr. Spitzer on his ReeNews site as well.

Full Read @ReveNews

Ongoing thread over at DSLR


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#2 TeMerc



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Posted 28 April 2005 - 06:48 PM

From Paul at Castle Cops:

Intermix however tends to disagree. Mid-April Intermix refuted the spyware label citing:

"The company's toolbar and redirect applications do not collect information about a person's web surfing habits or otherwise collect or transmit any personal information about users."

According to Intermix's press release as a result of this lawsuit:

"The company has decided to cease distribution of its redirect and toolbar applications pending a thorough review of the issues raised by the NY AG's office. The Company will not reintroduce those applications as downloads until every precaution is taken to ensure that users are fully informed about and consent to the installation of the applications during the download process and that the applications, once installed, can be located and removed easily"

Since Intermix is traded on the stock market, they have to issue more press releases. An excerpt from the newest one:

"Shares of the company, Intermix Media Inc. of Los Angeles, fell 55 cents, or 11 percent, to $4.25 in midday trading on the American Stock Exchange. "

And oh, they did mention how much net revenue they made from NY residents:

"The Company predominantly derives revenue from these applications through users' conduct of search queries and clicks on search results. Intermix estimates that, since inception, it generated a total of approximately $250,000 in net revenue attributable to downloads by New York state consumers. "

Full Read @Castle Cops

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