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Utah Sees First Spyware Case

denlin writes "According to a story at The Register: 'Overstock.com is set to become the first company to take action under Utah's new anti-spyware law. The company has filed a complaint against online retailer SmartBargains in the third district court in Salt Lake City. Utah's spyware law, the world's first, only made the statute book on 3 May. Utah is the only state with current spyware legislation, although California and Iowa are considering their own versions of the law.'"

42 of 123 comments (clear)

  1. This might work. by LPrime · · Score: 5, Interesting

    Patrick Byrne's comments regarding the hijacking of affiliate profits are dead on.

    I haven able to gather some interesting statistics about the "Parasitic" methods discussed in the article. The conversion of Visitors to Customer is about .2% of what you would normally get by traditional targeted banner advertising but the cost of the campaign is about 30% of the price. When you consider that in a commercial banner campaign your best hope is a 2% clickthrough (and even that is not that easy anymore) I can't see anyone except the ad companies making any money.

    In my humble experience the spyware companies and their affiliates target small startup companies luring them in with the cheap cost of getting new customers. Heck that's how they got me to spend 350$ on a campaign that ran on WhenU. For the money spend I received 0 Customers, 3 Complains and my CC being charged triple that took almost 30 days to resolve. But I receive at least 5 e-mails daily and at least 1 call per week from people advertising this exact same product.

    1. Re:This might work. by lothar97 · · Score: 4, Funny

      If you had spent $700, you could've had double the spam- and double all your returns (0 customers, 6 complaints, and 6 times the charges on your credit card). If it sounds too good to be true...

      --

    2. Re:This might work. by LPrime · · Score: 2, Interesting

      I fully admit it. As a matter of fact I did it just to see if there would be any ROI from it. After I realized that this is all a scam I never did it again, nor would I recommend anyone to do so. Like I said in my first post, they target small startups that have no Idea what they are doing with Internet Advertising.

  2. Mad Utah Props by WwWonka · · Score: 3, Funny

    You go Utah!!!

    I'm getting sick and tired of low life no morals spyware companies knowing what me and my 5 wives are browsing on the internet!

  3. This will be interesting... by Dozix007 · · Score: 5, Insightful

    I wonder if they will actually get anywhere. While Spyware is annoying and intrusive, the people who put it on your computer are generally in the right by their agreements. Most people that get spyware are uninformed, and ignorant. If you open unsolisited email, or if you download P2P, and other such software, you will end up with spyware.

    1. Re:This will be interesting... by lothar97 · · Score: 2, Funny

      I remember the good ol' days before spyware: it was always took a little work to fix the PCs of friends. Now it's quite easy- just run AdAware and everything's fixed!

      --

    2. Re:This will be interesting... by agm · · Score: 2, Interesting

      That all depends on what operating system you use.

    3. Re:This will be interesting... by lakeesis · · Score: 5, Informative
      The only problem is that some of the ignorant masses don't actually download the programs causing the banner ads -- they get webjacked into doing so.

      Though the "software license agreements" that most adware pushers have people page through seemingly give them the right do produce the pop up ads, this particular lawsuit addresses the end result -- the software equivalent of hiring someone to wear a billboard for your store to stand in the doorway of your nearest competition. Your hireling wouldn't necessarily prevent them from going in, but it annoys the heck out of the consumer, and infringes on the space of your competition.

      --

      sig: I'm not here right now, or busy. Please leave new sig after the tone.

      --
      sig: I'm not at home, or busy. please leave new sig after the tone.
    4. Re:This will be interesting... by Anonymous Coward · · Score: 3, Insightful
      the people who put it on your computer are generally in the right by their agreements. Most people that get spyware are uninformed, and ignorant.

      You can't make a legal contract if you are uniformed or ignorant. This is why shrinkwrap license are rarely (ever?) held up in court.

    5. Re:This will be interesting... by Jaysyn · · Score: 5, Informative

      A friend of mine ran Adaware last night & it found 2 tracking cookies, not a huge deal. I tell her to download Spybot & run it, and she found *118* more spyware related files. The moral of the story is use em both if you want to be sure you're clean.

      Jaysyn

      --
      There is a war going on for your mind.
    6. Re:This will be interesting... by IdleTime · · Score: 2, Funny

      SpyWare?

      Is that a feature of MS Windows? I can't say I have seen anything like it on my PC...

      --
      If you mod me down, I *will* introduce you to my sister!
    7. Re:This will be interesting... by devilspgd · · Score: 2, Insightful

      No, nothing Windows-specific about spyware, other then the fact that the vast majority of idiots who are willing to install spyware happen to use Windows.

      If you're willing to download and install Bonzai Buddy or anything similar, you'll do it in your operating system of choice.

      If Linux ever gets a foothold into the desktop market place, you'll see spyware popping up there too

      --
      Give a man a fish, he'll eat for a day, but teach a man to phish...
    8. Re:This will be interesting... by Nefarious+Wheel · · Score: 3, Interesting

      Agreed. I once sent a less than lauditory note to the LOP people who had installed their doubly-distilled, quadruply qualified and unmentionable (so ok, I read Doc Smith!) toolbar on my daughter's browser. Their response was "you agreed to it". Where? When? At no point did she click on a link that clearly indicated this would happen. Hate LOP. Hate, hate hate hate.

      --
      Do not mock my vision of impractical footwear
    9. Re:This will be interesting... by Bull999999 · · Score: 2, Interesting

      Some of those spy/adwares download themselves by minicking Windows message boxes, which I believe comes pretty darn close to fruad.

      I actually seen one case where an IE window set to hide everything with the background color of blue opens up to make it look like you are experiencing BSOD. It also brings up another pop up window with a message in tune of "something is wrong with your computer and click on "Ok" to download a software to fix it". It looked like a real deal execpt for the fact that the popup window had the IE banner on it.

      --
      1f u c4n r34d th1s u r34lly n33d t0 g37 l41d
    10. Re:This will be interesting... by TykeClone · · Score: 2, Insightful

      Anything that tries to trick a user into downloading and installing it is crap and shouldn't be tolerated.

      --
      A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
    11. Re:This will be interesting... by TykeClone · · Score: 2, Informative
      I'm working on a machine and ran Spybot first and killed a bunch of stuff. Then I ran AdAware and it found 2 bad running processes that SpyBot didn't kill.

      I agree that both must be used to catch everything - and the corallary - Run both on all of the user profiles on a given machine

      --
      A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
  4. Proliferation of stupid *ware invented words by Marxist+Hacker+42 · · Score: 4, Interesting

    From the article: Patrick Byrne, president of Overstock said: "Pop-up ads have been to Web browsing what spam is to email. Within the world of affiliate marketing, such software is often called 'parasiteware' on the grounds that the companies which distribute such code and those who advertise through it are parasitic on legitimate commerce: spyware hijacks not only consumer spending, but the commissions that would otherwise be paid to legitimate affiliate community"

    Ok, I get the idea that spyware is parasitic- but do we really need the cobbled together "parasiteware" to describe it?

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    1. Re:Proliferation of stupid *ware invented words by chachob · · Score: 2, Informative

      and that isnt the worst of them! check out this little "dictionary" of -ware terms...

    2. Re:Proliferation of stupid *ware invented words by offpath3 · · Score: 2, Funny
      Proliferation of stupid *ware

      Stupidware... Just one more word for the list.

  5. A question by neilcSD · · Score: 5, Insightful

    Here's what I have always wondered - why do merchants say the 1st amendment protect intrusive advertising? Seems to me that if someone doesn't want to hear it, they shouldn't be forced to. Faxers, spammers, all try to hind behind the constitution. I thought the First Amendment only protects free speech, it does not guarantee an audience. Also, it really isn't free speech if it costs people something is it (bandwidth, etc)?

    1. Re:A question by chachob · · Score: 2, Interesting

      perfect example of "fax spamming" was discussed in a previous article

    2. Re:A question by dbc · · Score: 4, Informative

      well, yes. and in fact the 1st A. gives broad protections mainly to political speech. you can stand in the park a rail against the mayor all you like. but the protections for commercial speech are *much* more narrow. and yes, forcing you to pay for them to advertise to you is not protected by the 1st A.

    3. Re:A question by register_ax · · Score: 4, Interesting
      Seems to me that if someone doesn't want to hear it, they shouldn't be forced to.

      Also, it really isn't free speech if it costs people something is it (bandwidth, etc)?

      True overall, but everything costs someone something. Especially in the day in age where time is just as precious (if not more so) as the green that comes in. Taking a protest to the streets corridors off that section of pavement that you have paid for and costs someone time in detouring. But the issue gets mucky as this is also right to assembly. Now if we detract time altogether and only demand it to be a tangible product, we might see how we might be able to beat 'round this African lilac and escape the issue entirely. Ah, if only simplicity existed and people could show compassion and patience for another. But no, it is about your rights, and your rights require to interfere with other's rights. It just isn't as pen and paper write the laws, which is also why you see an influx of laws and the practice of law in the day in age.

      Recently I was reading a press release on some big item having to do with copyright or the like, and one notable CEO or another said that since there are no laws that exist saying you explicitly can, it means you are not able to (sorry, I can't remember where or who, you'll have to take my word for it :)). So if it is not explicitly written they were saying, there's no rights saying you necessarily can do it. I found that highly repulsive as I figured laws existed as restrictions, not being a mode of checking whether or not you can brush your teeth with so and so toothpaste. Extreme I know, but this has everything to do with freedom of speech. OK, maybe I'm pulling freedom of speech into freedom of use, but I think a slow integration of the two is on the rise, where it becomes impossible to even discuss the technology being used as can be readily seen within this era of the DMCA. Companies wish to do away with these rights because it makes everything a lot easier on them ... no lawsuits for poor products, only being able to be enforced by the government that "works" for the people.

      It's a quiet emergence I fear the majority is not ready for. But then I can also readily see they will never be ready for it. Interesting to see how things will turn out regardless.

    4. Re:A question by snyps · · Score: 2, Funny

      freedom of speach is not nearly what people say it is, if you go infront of the whitehouse and start badmouthing bush, then you will most likely be arrested. There are enough holes in the 1st amendment that you could fit an elephant through (accusation intended).

    5. Re:A question by cpt+kangarooski · · Score: 4, Informative

      I know that there are "NO first amendment rights to advertise" as I am an educated USAian.

      I don't think you're even slightly well-educated:

      "The First Amendment, as applied to the States through the Fourteenth Amendment, protects commercial speech from unwarranted governmental regulation." Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, 447 U.S. 557 (1980).

      However when you say "if it's not expressly forbidden, it's ok to do it" sounds more like Amsterdam to be honest.

      Nope -- that's the English tradition.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    6. Re:A question by cft_128 · · Score: 3, Informative
      why do merchants say the 1st amendment protect intrusive advertising?

      I posted something in another thread that was related to this.

      Part of it boils down to an unexplained aside in an 1886 Supreme Court ruling that grants corporations 14th amendment rights. This has been used to imply that corporations are 'citizens' and deserve the other rights too.

      Also, it really isn't free speech if it costs people something is it (bandwidth, etc)?

      I think you hit the nail on the head there - their right to freedom of speech does not grant them the right to use *your* private facilities to do it.

      "I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." -Thomas Jefferson

      --

      Underloved Movies and Pub Quiz: donotquestionme.org

  6. Quite the law by bcore · · Score: 4, Informative

    The article is a bit sparse on detail, but here's a link I dug up: Link.

    Quite law, that. I wonder if it will work?

  7. Hooray for Iowa by autopr0n · · Score: 3, Insightful

    IA was one of the few states that had an anti-spam law on the books before the federal government stepped in and fucked everything up with there idiotic (yes you) CAN-SPAM act.

    Hopefully more states will follow suit and things can quiet down for a while before the Fed steps in and legalizes it.

    --
    autopr0n is like, down and stuff.
  8. not in the right anymore by r00t · · Score: 5, Insightful

    Spyware authors may have been "in the right"
    prior to this law. Why do you think the law
    was passed? :-) An EULA contract is nothing
    when it goes against the law.

  9. glad to hear it by Rick+and+Roll · · Score: 5, Interesting
    I am glad to hear that the state of Utah has an anti-spyware law. I would like to see my own neighboring state, Arizona, get one.

    I run linux and have never had to deal with spyware or adware on my own computer (though I hear one company is using .xpi to add a "search bar" to Mozilla). My parents, however, run Windows. My little sister installs programs from cereal boxes that are full of spyware, and I swear one of those programs caused porn pop-ups to be displayed on my computer.

    So what I'm getting at, is that spyware is a huge problem and it's long time someone did something about it! It's just a pity that there hasn't been a government agency or a court brave enough to bring a big judgement against the industry. The fact of the matter is, these programs vandalize people's systems. They are a form of property damage. Plus they expose people to pornographic ads. They break so many laws already. It is too bad that there has to be legislation before someone can make them pay.

  10. While they are filing suit... by jwcorder · · Score: 5, Informative

    I want to get on the band wagon and file a suit against Overstock.com! I bought one thing from them and I have been getting bombarded with emails sometimes two or three times a day.

    I even tried to opt out of their email list and the onslaught continues. So before they start sueing people they need to examine their in house activites.

    --
    http://jayceecorder.blogspot.com
    1. Re:While they are filing suit... by jwcorder · · Score: 3, Interesting
      That's the same strategy I use for everything. Even this slashdot account is on my hotmail. Once a week, I log in to it and delete all the email so they don't shut the account down.

      I don't give my real email address out to anyone other then bill companies (utilities, mortgage, student loans) and my family.

      It is this reasoning that keeps me from getting any spam what so every on my work or home email addresses.

      The only accounts I have spam issues with are my webmaster@domain.com addresses that I have for the four or five sites that I admin. Those poor bastards get a large treatment from Cloudmark's Spamnet utility located at www.cloudmark.com.(Excuse me for not linking it, I am just lazy)

      --
      http://jayceecorder.blogspot.com
    2. Re:While they are filing suit... by KrispyKringle · · Score: 4, Interesting
      Better yet, check out SpamGourmet. I've seen a few other services come close, but this is the only one I know of that allows you the flexibility to create disposable addresses without logging on (e.g. while standing in line at the cellular phone counter) and restrict what addresses can be created to prevent enterprising spammers from just creating new addresses for you.

      You go there and register a name (say, august_zero@spamgourmet.com). Then, whenever you have to give out a displosable address, you make it string.n.august_zero@spamgourmet.com, where string is some unique string you'll use to remember this address and n is an integer ST 1 Far easier.

  11. the wrong direction by Wellmont · · Score: 4, Interesting

    Doesn't anyone think these should be class action lawsuits started by consumers rather then competitors? This just leaves too much room for overstock to declair advertising practices of their competitor unlawful just to get them out of the picture, not to champion the rights of online consumers. This is almost as corrupt as the idea of Spyware, addware in general! The two cases that have been posted on Slash dot within the last week have been both started by companies who are in direct competition with the plaintifs. This doesn't seem like a revolution where the consumer is taking back his right to accept or reject advertisements it more or less seems like a great way to get rid of competitors who had to resort to unaccepted advertisement methods in order to get an edge on the monopolistic front runner!

    1. Re:the wrong direction by c+era · · Score: 2, Insightful

      Actually, overstock.com does have legal grounds to sue. Here's the prohibited conduct part of the law:

      13-39-201. Prohibited conduct.
      (1) A person may not:
      (a) install spyware on another person's computer;
      (b) cause spyware to be installed on another person's computer; or
      (c) use a context based triggering mechanism to display an advertisement that partially or wholly covers or obscures paid advertising or other content on an Internet website in a way that interferes with a user's ability to view the Internet website.
      (2) It is not a defense to a violation of this section that a user may remove or hide an advertisement.

      What overstock.com is sueing over is section 1.C & 2. We're talking about adds that goto a compeditor from their site. The thing with these pop-ups, is that they present a deal that looks like it could be from overstock.com and when the user click on it, they goto SmartBargains instead.

      Think of this along the lines of Wal*Mart paying someone to put a posterboard with Wal*Mart advertisements on it, and go into near by Target stores and tell Target's customers to goto Wal*Mart instead. Who's the one doing the unethical advertisement?

  12. How is this the first? by Zen · · Score: 2, Insightful

    Maybe LL Bean should have filed suit in Utah instead of in Maine? Yes, it's different because this one will test Utah's new law. But this sounds like exactly the same problem, and since the story's short on details, it could even be the same culprit (claria).

  13. Try this scenario... by Duhavid · · Score: 3, Interesting

    I let my son use my wife's computor to go look up airplane pictures. He is 11, is beginning to learn how to use a browser and search engines. So, I figure OK, let him learn. Well, what happens when he accidently clicks on a web page that has one of the "do you want to install" things on it? This is not unsolicted email, not p2p. And these sites are such that you cant tell you are going to get the treatment until *after* you have clicked the link.

    OK, I can tell him to always click no. But they word the text such that persons of average adult learning and intelligence think that saying yes is a good thing. So what is an 11 year old going to do? And how about if it is one of those sites that continually brings the "do you want to install" prompt back up if you answer "no". Try it sometime, it is not fun for me. He is going to get fed up and answer yes ( which is exactly what they want... ).

    I think that "pure software" act I saw here on /. was right on for this problem.

    --
    emt 377 emt 4
  14. Legal virusus by scifiber_phil · · Score: 3, Insightful

    Spy ware is nothing but legal virusus in my book. Some legal mumbo-jumbo in a EULA saying that I agree to allow you to install third party crap that does god knows what is just unethical and should be illegal. The fact that most of this stuff then ferments to a greater level of scum by spying on me etc. just adds to the insult. NOONE would knowingly agree to ANY of the things, if the EULA were actually truthful about all the effects of clicking on the "I Agree" button. The social engineering done by the lawyers in these EULAs is no differrent then the social enginneering in an email getting someone to open an attachment. The results, in my book are the same. Now I've got a virus on my machine. Both should be equally illegal.

    1. Re:Legal virusus by TykeClone · · Score: 2, Interesting

      Anything that requires a third party application to remove is a virus (OS notwithstanding)

      --
      A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
  15. Spyware can be a good thing by Skraut · · Score: 4, Funny
    Yesterday my boss got his first batch of spyware. When I explained to him what it was and why it needed to be removed he started getting paranoid thinking everyone was tracking him.


    He asked me "Why don't you ever have to deal with this crap on your system?"

    I dropped a knoppix cd on his desk and simply said "Linux."

    --
    Introducing Microsoft Vacuum 1.0 The first Microsoft product that doesn't suck.
  16. Don't stop there... by r_j_prahad · · Score: 3, Informative

    After Adaware and Spybot pronounced my wife's PC clean, it still appeared to have problems. So I ran Moosoft's "The Cleaner" and found nine more Trojans.

    The moral of this extended story is: don't stop at one or maybe even two spyware-adware removers. Malware is clever and insidious and needs to be treated with a "cocktail" mix of software antibiotics.

  17. PEACE OFFERING - Re:While they are filing suit... by jonfullmer · · Score: 5, Informative

    Hello, jwcorder. I'm the Senior Network Engineer at Overstock.com. I was sorry to hear that you're having trouble unsubscribing from our emailing lists. We are continually doing our best to make sure that the only people receiving our e-mails are those that actually want to receive them.

    Long story short, if you've unsubscribed via our website, and you are still receiving e-mails (promoting the latest deals), please contact postmaster@overstock.com

    As a further peace offering, to be absolutely certain you are no longer bothered by unwanted e-mails (from us), feel free to contact me directly at: jon@overstock.com. I'm offering you this address as a token of my sincerity.

    Overstock, as a company, is opposed to SPAM. I, as an engineer and administrator, detest SPAM, so please believe me that I sincerely want to make sure that you're not getting pestered by unwanted e-mails (from us).

    This offer stands for any of the rest of you loyal Slashdot readers. Overstock has some great deals to offer you, but if you don't want to hear about them, please let us know (you can unsubscribe on the website, or contact us via either e-mail addresses I've mentioned). Thanks for your patience. I look forward to hearing from you and serving you.

    - Jon Fullmer