Author Topic: Groundbreaking Settlements in NY -- Involving DirectRevenue  (Read 2262 times)

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Online Corrine

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Groundbreaking Settlements in NY -- Involving DirectRevenue
« on: January 29, 2007, 10:45:37 PM »
Cingular Wireless LLC, Priceline.com and Travelocity.com have agreed to settle their part in an ongoing investigation against DirectRevenue. In 2006, the New York State Attorney General's office sued DirectRevenue for deceptively and fraudulently installing its pop-up ad-serving and Web-tracking software on millions of PCs without approval or consent of consumers.

Brian Krebs article

NYState Press Release:
Quote
“Advertisers will now be held responsible when their ads end up on consumers’ computers without full notice and consent,” Cuomo said.  “Advertisers can no longer insulate themselves from liability by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers.  New Yorkers have suffered enough with unwanted adware programs and this agreement goes a long way toward clamping down on this odious practice.”
 

Ok, Cingular, Priceline & Travelocity won't have to pay out much, however,

Quote
Today’s agreements require that each advertiser deliver online ads only through companies that:
  • Provide to consumers full disclosure of the name of the applicable adware program and any bundled software;
  • Brand each advertisement with a prominent and easily identifiable brand name or icon;
  • Fully describe the adware and obtain consumer consent to both download and run the adware;
  • Make it practicable for consumers to remove the adware from their computers;
  • Obtain consent to continue serving ads to legacy users;
  • Require their affiliates to meet all of these same requirements.
  • The agreements also require Priceline, Travelocity, and Cingular to engage in due diligence with respect to selecting and utilizing adware providers.  Prior to contracting with a company to deliver their ads, and quarterly thereafter, the companies must investigate how their online ads are delivered.  The companies must immediately cease using adware programs that violate the settlement agreements or their own adware policies.
  • Under the terms of the agreements, Priceline, Travelocity, and Cingular will pay $35,000, $30,000, and $35,000, respectively, to the State of New York as penalties and investigatory costs.


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Offline babyoh

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Re: Groundbreaking Settlements in NY -- Involving DirectRevenue
« Reply #1 on: February 09, 2007, 12:26:37 AM »
corinne,

thanks so much for posting items like this, and keeping us informed.

* to me, it doesn't sound like the "settlement" will be much of a deterrent, for these or other co's, however

it's STILL profitable for them to spread popups, adware etc.

they DO IT, make their money -- and IF they get caught, it never COSTS them nearly as much money as they profited.

* better, with an added provision that assesses a 1,000 dollars penalty for each new violation of the "Agreement."

better STILL - that the 1,000 dollars must be paid directly to each consumer who gets stuck with their nasty-ware.

* as an old political science teacher of mine used to say, special interest groups fight against having certain laws passed.
THEN, if they ARE passed, they fight against having them enforced.

as long as the risk is worth the reward, co's (and spammers) will likely be spreading this stuff..

- my 2 cents, anyway

 :2cents:

Online Corrine

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Re: Groundbreaking Settlements in NY -- Involving DirectRevenue
« Reply #2 on: February 09, 2007, 03:09:24 PM »
I suspect that the reduced fines were negotiated with the intent of getting this precedent on the books.  Now that it is, who knows what the next set of fines will be.  Its a start anyway.


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