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Major Advertisers Caught In Spyware Net

theodp writes "BW reports on Fortune 500 companies' use of adware - Sprint for its PCS phones, major banks peddling Visa cards, Sony and retailers including Circuit City. And Mercedes-Benz before the company, fielding complaints, put on the brakes. So far, law enforcement has mostly targeted the transmitters, but NY Attorney General Eliot Spitzer is threatening to hold accountable household-name advertisers that use adware networks. No longer, says Spitzer, can companies play dumb."

11 of 144 comments (clear)

  1. excellent by choongiri · · Score: 5, Insightful

    quite simply, the only way we will see the end of adware and spam is if they stop being profitable. this is excellent news, and i sincerely hope goes ahead with his threat.

  2. I see a problem with this approach by the NY AG by einhverfr · · Score: 4, Insightful

    So, if I want to harass my competitors, I can release spyware with their ads on it or pay for spyware distribution in their name? This would subject them to needless prosecution and distraction?

    The transmitters can easily be traced. It is much harder to trace the source of the ads themselves. For civil suits, the "preponderance of evidence" might be a pretty weak standard because there is not much to go on to discredit the prosecution. Of course IANAL...

    --

    LedgerSMB: Open source Accounting/ERP
    1. Re:I see a problem with this approach by the NY AG by Thanatopsis · · Score: 5, Insightful

      Not really - the AG would simply follow the money, right back to you. Spizer is going after willful ignorance, namely when you suspect there's a problem but chose just not to investigate it too closely thus remaining willfully ignorant.

  3. how bloody convenient... by advocate_one · · Score: 4, Insightful
    That's making many advertisers nervous, though they insist they work with subcontractors and often don't know about any adware use until they get a complaint.

    "There's plausible deniability at each tier," said Chris King, product marketing manager at anti-spyware vendor Blue Coat Systems Inc.

    to put it politely... bollocks... they subcontract it, they are responsible for it... they can't fob off the responsibility to the subcontractors... they are responsible for making sure that their subcontractors do it legally and ethically...

    --
    Donald 'Duck' Dunn: We had a band powerful enough to turn goat piss into gasoline.
  4. I hope this works out... by Kagura · · Score: 4, Insightful

    Unfortunately, unless some other big names in law jump on this, we won't see anything more of this after this article. This won't be the first time something like this happened.

  5. "Follow the money" by PornMaster · · Score: 4, Insightful

    The concept of "follow the money" unfortunately works way too well. Whether it's funding adware asshats or terrorist organizations, in order to cripple the bad guys, cutting off funding works wonders.

  6. Re:This happens more than you know by rhizome · · Score: 4, Insightful

    >It's really hard to hard to control the means our ads get distributed using 3rd party agencies.

    What you describe is willful ignorance. You know the problem exists but you just push the blame down the chain. This whole issue could be avoided if you put some care into the contracts you sign. It's probably better than getting sued by the NY Attorney General.

    --
    When I was a kid, we only had one Darth.
  7. How is this any different? by artemis67 · · Score: 4, Insightful

    Can't companies already commit crimes in the name of their competitors? So, what's so special about the online world that is suddenly going to embolden people to commit federal crimes?

    Don't you think that if someone is misrepresenting Proctor & Gamble, the NY AG is going to go straight to P&G and get their full compliance in solving the crime?

    And for the companies commiting the fraud, is it really worth putting their entire company on the line over a stupid adware stunt?

  8. Expedia just doesn't get it! by tomhudson · · Score: 4, Insightful
    FTFA:
    Some advertisers defend the practice.

    "It is just a marketing tool that we use," said Expedia spokesman David Dennis.
    So, maybe we can use the same line of reasoning for a DDoS of Expedia - "Its just an anti-spyware/adware measure that we use."

    I swear, do companies go out of their way to hire the lowest-IQ, most mouth-breathing knuckle-dragging, slope-foreheaded idiot they can find to be company shill^Wspokesman, or is it a side-effect of the job?

  9. Re:This happens more than you know by Todd+Knarr · · Score: 4, Insightful

    And why don't you know what the subcontractors you're using are doing? I know that, in every other industry that subcontracts work, the general contractor is ultimately responsible for the work. If they don't know what the subcontractor's doing, they get dinged for that on top of the actual faults in the work. Perhaps, if you don't have the expertise to ride herd on your subcontractors yourself, you should begin doing what construction and other general contractors do and write clauses into your advertising contracts that provide for big, nasty penalties for subcontractors who use adware/spyware and make those subcontractors liable to you for any problems they cause that cause you any liability, plus requires the people you hire to include indentical clauses in their contracts with anyone they subcontract out to as well (with likewise nasty penalties for failing to do so). Then enforce those clauses strictly. If the agency balks, take your business elsewhere because that's a sure sign they are doing something underhanded and don't want to be nailed down on it.

  10. Re:This happens more than you know by tomhudson · · Score: 4, Insightful
    4 words: willful ignorance, due dilligence
    1. Nobody is forcing you to advertise on the net (which even in 1999 was already the LEAST effective means of advertising, and has gotten worse in terms of credibility, results per dollar spent, etc)
    2. Nobody is forcing you to use the agencies you mentioned. Its not hard to check out the people you're dealing with. That you don't is the hallmark of the wilfully ignorant who don't do their due diligence
    3. Contrary to what you state, its very easy to control how your ads get distributed - just put in a clause that provides financial penalties if they use adware/spyware. Agencies that won't agree to that are obviously not going to make the short list. That you are so desperate that you go with someone who won't agree to such terms is a sign that your business plan is doomed.
    It's much easier to pay other people do the work and focus on developing a good product.
    What good is it developing a good product if, by the time you get to market, you've already pissed off every possible consumer?