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Adware Related To Web Sites Ruled Legal

Cobb writes "The 2nd U.S. Circuit Court of Appeals recently ruled that it is legal for adware programs to show you pop ups for knock-offs and rivals when you visit a companies website. 'In 1-800 Contacts's lawsuit against adware provider WhenU.com, the appeals court likened WhenU's ads to retail stores that place generic competitors next to brand-name products.'"

45 of 218 comments (clear)

  1. I Went To The Site by DanielMarkham · · Score: 5, Funny

    But it had an annoying pop-up, so I left without RTFA.

  2. So how could it be illegal if the servers are... by genrader · · Score: 2

    How could it be illegal if the servers are in Europe or something?

  3. Great! Just great! by Anonymous Coward · · Score: 5, Insightful
    from the great-just-great dept.

    Oh? You would prefer a ruling that made it illegal for you to control how and what content is displayed on your computer?

    Legal precedent, Zonk. We don't get to choose our litigants, just the legal principles we'd like to see enthroned.

  4. Do pop-ups successfully sell anything at all? by MECC · · Score: 5, Insightful

    "the appeals court likened WhenU's ads to retail stores that place generic competitors next to brand-name products."

    More like putting generic competitors in front of brand name products preventing you from reaching the product you want until you move the competing product aside.

    Really, if come company really wants to get me to dislike them and not buy their product, just put annoying pop-ups on my screen in front of what I was looking at. Pissing me off really makes me want to buy something

    --
    "We are all geniuses when we dream"
    - E.M. Cioran
    1. Re:Do pop-ups successfully sell anything at all? by youngerpants · · Score: 4, Interesting
      I wish I could mod you up, but just ran out of mod points on the previous article


      I'd take your analogy one step further; its more like walking into a shop and having the generic product thrown in your face. Thats REALLY not going to make me want to shop there


      Like yourself, pissing me off doesn't make me want to shop there; I'll either walk out of the door or just browse to another site


      The difference is, when I shop online, its even easier to go to a competitors store.

    2. Re:Do pop-ups successfully sell anything at all? by AKAImBatman · · Score: 4, Interesting

      Pop-ups probably don't sell anything, but they do generate clicks. Note how the advertisers always place popups, popunders, and popovers *exactly* where you're most likely to click by accident. e.g. My browser mysteriously loses focus, so I click to reset the focus so I can scroll. Suddenly a popover appears and I've clicked on it! I quickly close the resulting window, but somebody has already been payed for that click.

      In any case, this ruling is really more about the issue of advertising on competitors sites. This ruling states that I can plug my Spacely's Sprockets product on Cosmo's Cogs website as long as Cosmo has third party advertising of some sort. Now if Cosmo was smart, he'd be using Google Adsense or a similarly featured product. He'd then be able to tell Google that he doesn't want to see my ads for Spacely's Sprockets. All of which violates no ones rights, yet everyone is happy. :-)

    3. Re:Do pop-ups successfully sell anything at all? by Zanthor · · Score: 2, Insightful

      Saddly this is a case where the consumers vote with their wallets - and consumers are often uneducated when it comes to shopping online.

      The only reason pop-up adds still exist is because they are making money hand over fist. If the consumers were educated to see that these adds aren't from the vendor they are looking at - and specifically how unethical the Malware/Spyware/Addware companies are - then perhaps... naaaaah, they'd still buy their bigger dangling participles.

      --

      Zanthor

    4. Re:Do pop-ups successfully sell anything at all? by AtariAmarok · · Score: 4, Interesting
      "Pissing me off really makes me want to buy something"

      When I see something in a popup or spam, it encourages me not to buy it and makes me think of the company as a scam. My opinion of "University of Phoenix Online" could not be lower as they sometimes send me 50 spams a day.

      It is like if Coca Cola decided to do an ad campaign in which they paid the advertisers to drink gallons of Coke and then walk down the streets with fly undone peeing the processed Coke on passersby.

      --
      Don't blame Durga. I voted for Centauri.
    5. Re:Do pop-ups successfully sell anything at all? by rlthomps-1 · · Score: 4, Insightful

      I feel the same way, I don't buy products from pop-ups or companies that advertise via pop-ups

      Sadly, there don't enough of people like us. I'm sure if market research showed that pop-ups had a terribly negative effect on consumers, they would cease to exist.

      My guess is that firms feel that if you see a few pop-ups for a G-22 wireless camera, you might be ticked initially, but that you'll still be able to recall the product in the future. So 3 months from now, you may be in the market for such a camera. You may not remember where you first heard of it, but you know of the product and may very well look into purchasing one.

      Anyone have a link to some sort of research on this topic?

    6. Re:Do pop-ups successfully sell anything at all? by AKAImBatman · · Score: 2, Informative

      Slight modification to my example. In the case of WhenU, Cosmo doesn't have a choice because the user has supposedly agreed to view the advertisements. Mr. Cosmo will just have to live with this situation or help fight the legality of adware to install itself on a user's computer (a separate issue from this ruling).

    7. Re:Do pop-ups successfully sell anything at all? by 91degrees · · Score: 2, Funny

      Pissing people off seems to generate sales. There's some very annoying phone ringtones at the moment, and part of the advertising seems to be noisy web ads.

    8. Re:Do pop-ups successfully sell anything at all? by garcia · · Score: 3, Interesting

      Sadly, there don't enough of people like us. I'm sure if market research showed that pop-ups had a terribly negative effect on consumers, they would cease to exist.

      I had a guest at my house and I happened to be watching for an issue w/adzapper and squid when I noticed they were surfing sites on my Windows machine upstairs. Curious as to why they were using a Windows machine to surf the net (I have a Mac for that) and which sites they were surfing (fearful of spyware and bullshit) I found they were surfing sites they pulled out of SPAM.

      So, if this guest, who *is* aware of spam, spyware, and trojans was doing it I have a feeling that there are tons more like them.

      On a side note, I brought down the Internet interface and told them to use the Mac instead, "must be a problem with the Windows computer, I'll fix it later." ;)

    9. Re:Do pop-ups successfully sell anything at all? by j-turkey · · Score: 2, Insightful

      While I'd like to see the malware authors screwed at every turn, this ruling actually makes sense, and creates a precedent in the right place.

      Since WhenU's software is installed on the client machine, content is not altered on the 'target' servers. It's only altered before it hits the client. This reminds me of the C&D letters sent from dumbass CEO offices to sites like the 'Dialector', where sites would be translated into a different dialect. Caselaw like this will shut down the threats like these.

      I'm hoping that malware fighters will target unfair and illegal EULA's, as well as click-thru licensing next. That is the dangerous stuff, far more dangerous than modifying content before it hits the screen of a client machine (or even popping stuff up). I think that a ruling against the latter sets a bad precedent.

      --

      -Turkey

    10. Re:Do pop-ups successfully sell anything at all? by 91degrees · · Score: 2, Insightful

      Please stop.

      If it's a bad anology, say so, but don't try to correct it. It's tedious. You end up with such a heavily patched analogy that it's more complicated than the situation it's trying to illustrate.

    11. Re:Do pop-ups successfully sell anything at all? by slavemowgli · · Score: 2, Informative

      Here's something that may help with accidental clicks: don't use mouse clicks to shift the focus back to your browser window, use a key combination like Alt-Tab (on windows - on Unix, consult your window manager's man page, or use a window manager that never shifts focus automatically).

      Outside of that, be sure to use AdBlock, disable pop-ups and all that - I can't even remember the last time I saw a pop-up on my own computer. :)

      --
      quidquid latine dictum sit altum videtur.
  5. Not the same by PhilHibbs · · Score: 3, Insightful

    It's more like me going into a shop and standing by a counter and offering better prices to the customers in that shop. I'm sure I'd get chucked out by security pretty quickly.

    1. Re:Not the same by Xtravar · · Score: 3, Insightful

      Actually, it's like having a servant who replaces all the ads in your newspaper with generic brand ads.

      Remember, the actual viewing is taking place on YOUR computer. Assuming someone would install this adware on purpose or knowingly, this might be considered 'good' for the consumer.

      The actual web site has no say in HOW you interpret their page. If it happens to be your client software interprets their page with different ads, so be it.

      Yes, we all hate adware, but the ruling makes sense even if the court used a dumb analogy.

      --
      Buckle your ROFL belt, we're in for some LOLs.
  6. that is, IF the adware was user-installed by Speare · · Score: 4, Insightful

    Do the users know they're getting this adware junk on their machines? If the adware was installed without the user's informed consent, then this is the problem. What the adware is actually doing on the computer is less of a problem. Who knows, maybe some users WANT competitive comparisons to pop up. Think of what a Froogle Toolbar widget would be like.

    --
    [ .sig file not found ]
  7. Re:So how could it be illegal if the servers are.. by 91degrees · · Score: 2

    If you do business in the US then you are obliged to abide by US law. Since they are selling advertising to US companies, they are doing business in the US.

  8. Install? by Iriel · · Score: 5, Funny

    I notice that the case didn't address the legality of adware being installed without a user's full knowledge. I find it humorous, but I have an idea!

    They can inform the user that adware is being installed with a pop-up! Everybody reads pop-ups!

    --
    Perfecting Discordia
    www.stevenvansickle.com
  9. I'm amazed.... by panurge · · Score: 3, Funny
    In fact, I'm astounded, frankly.

    I'm now about to visit the 2nd U.S. Circuit Court of Appeals and stick a big poster over their front door reading "For cut-price justice which is just as good, why don't you use the 3rd. U.S. Circuit Court of Appeals instead? Our charges are only half as high, but our court officials are just as supercilious and our judgements just as incomprehensible. Why don't you book your appeal with us to-day? American Express and bullion accepted.

    And then I'm off to see how long I last parading up and down outside WalMart with a sandwich board advertising our local deli.

    --
    Panurge has posted for the last time. Thanks for the positive moderations.
  10. Thats fine... by BooRolla · · Score: 5, Insightful
    I'm not concerned with what they show being illegal or legal. I'm concerned with how they get on my computer being legal or illegal.

    I should not have to dig through an install list to see if there is *anything* hidden in there. Especially anything that dials home and tells on me. If I'm downloading X, all I want is X. Period.

    Screw thinking that trademark infringement is shitty- Installing a program secretely and going to great lengths to make it a bitch to remove, now that is shitty!

  11. "Authorized" Adware by kawika · · Score: 5, Insightful

    The court didn't have a lot of choice. WhenU was saying that the user authorized the software and it's the user's computer to do what they want. We all know intuitively that's bullshit, but the court needs evidence. If 1-800-Contacts didn't provide (enough) evidence of users having WhenU on their system without knowledge or consent then the ruling pretty much had to be for WhenU.

    1. Re:"Authorized" Adware by TekPolitik · · Score: 2, Insightful
      The court didn't have a lot of choice. WhenU was saying that the user authorized the software and it's the user's computer to do what they want.

      I haven't been following this case, but from the limited information in TFA, the case was brought by the owner of a web site that had competitor's ads popped up over it. If so, then the question of whether the user authorised the software to do what it did is irrelevant - there does not appear to be any breach of the rights of the party bringing the suit.

      If it had been a user bringing suit because the software was installed without their consent, then the outcome may have been different depending on exactly how the software was deployed to their system, who caused it to be deployed there, and who the user sued. Whether the outcome would be different in such circumstances depends on some ancient rules of law that would seem arcane and irrational to people who are not lawyers, and that are not even well understood by most lawyers these days.

  12. Complete Crap by DarkBlackFox · · Score: 4, Insightful

    'In 1-800 Contacts's lawsuit against adware provider WhenU.com, the appeals court likened WhenU's ads to retail stores that place generic competitors next to brand-name products.'

    That's bull. Ads for a competitor produced by a 3rd party on any site is more like walking into a Burger King and seeing McDonalds ads plastered all over. In the physical world, managers have the power to deny any 3rd party advertising on their premesis, and can remove any posters/flyers/whatever not explicitly approved from their property. Why is cyberspace any different? WhenU is a 3rd party, hired by a competitor to produce advertising when users enter a target site. Said site has no defense, or no method of blocking/taking down the ads, as the pop-ups are generated client side. How does that make any sort of logical sense- that anyone can advertise whatever they want as a pop-up on any given site?

    Generally, when I visit a particular company's website, I'm interested in that company's products, not alternatives or knock-offs. If I were looking for "similar" products, I'd hit a search engine and search for "generic product X" rather than "brand name product X."

    1. Re:Complete Crap by BooRolla · · Score: 3, Insightful
      There is a difference there: Burger King owns (rents, etc) their property. Guess who owns my computer?

      Its not like WhenU can put stuff on 1-800 Contacts domain. If there was some reason I installed this junk on purpose, whatever the hell that could be, who is 1-800 Contact to tell me differently. I dunno, maybe I wanted competition or what have you. Just remember, WhenU is not putting anything on 1-800's site, they are spying on you and offering "relevant" ads in return.

      Your brick and mortar analogy is broken.

    2. Re:Complete Crap by squiggleslash · · Score: 2, Insightful
      Well, it's more like driving through Burger King's Drive-Thru, and finding as you're about to order your burger that the inside of your car suddenly covered in ads for McDonalds.

      How did it get covered? Well, it turns out that the mechanic who provided the "free installation" on your car tires installed a little robot that popped out and pastered ads all over the dashboard, and it said right there, on the fifth page of the terms and conditions for free tire installation, under paragraph 72, subsection B, term IV "Our mechanic may make other modifications to your vehicle in return for agreeing to install the tires for free"

      Ultimately the question here is not "Is the malware company contemptable?", it's "Who has the right to sue them? A local business, or you?"

      Hey, great, I've turned this one into another car analogy. But I think mine kind of works.

      --
      You are not alone. This is not normal. None of this is normal.
    3. Re:Complete Crap by ampathee · · Score: 2, Informative

      The thing is, the court "views WhenU's ads as authorized" - so they're assuming that the user chose to install the program.

      They are not dealing with the possibility that the adware was installed without the user's knowledge and/or consent here - that is another issue.

      When you think of it that way - maybe I want to install a program that automatically gives me info on the competing products of those that I search for. Why should that be illegal? Why should a website that I'm viewing have any say on what other software I am allowed to run, or other pages I am allowed to view?

      And it's not really BK ads in McD's "plastered all over" - the ads are client-side, as you say - so it's only the users who choose (so we assume) to install this software who see the ads.

    4. Re:Complete Crap by slavemowgli · · Score: 2, Informative

      Except for the fact that this is not what was ruled on. The court did not go into how this particular piece of adware was installed, whether the user knew about it, consented to it or anything; rather, it merely said that *assuming* that the user did, the competitor did not have a case, as, basically, the user is allowed to do what they want on their computer, *including* installing a program that displays competitors' ads when you shop for something online.

      Staying in the analogy, the robot plastering those ads on the inside of your car would exist, but the court merely ruled that when you go to McDonald's and willingly and knowingly have a robot in your car that then displays Burger King ads to you, that *McDonald's* does not have a case.

      And that seems quite reasonable to me.

      --
      quidquid latine dictum sit altum videtur.
  13. Re:What a shame! by AtariAmarok · · Score: 2, Funny
    "Great - another annoyance sentenced legal! Will stupidity never end?"

    It is less the annoyance itself being legal than it is the content of the annoyance. Compare it to someone crapping on your doorstep. The court issue here was not whether it is legal to do so: it is more like whether it is legal to have undigested corn in the crap.

    --
    Don't blame Durga. I voted for Centauri.
  14. Sour Analogy by atheos · · Score: 3, Interesting
    the appeals court likened WhenU's ads to retail stores that place generic competitors next to brand-name products.


    What a sour analogy. I see it more like a retial store placing their generic items IN SOMEONE ELSES STORE. I work for a business that sells products online, and we have had customers complain to us becuase our website has hyperlinks to our competing websites (placed there by malware).
    I don't think they understood the mechanism at work here! It's more likened to WalMart placing their generic products on K-marts shelves!
    1. Re:Sour Analogy by hkmwbz · · Score: 2, Insightful
      "I see it more like a retial store placing their generic items IN SOMEONE ELSES STORE."
      Are you saying that your computer belongs to someone else? Or that the webmaster of the site you are visiting has the right to dictate to you how you view his site? That it should be illegal to use an ad blocker to change "SOMEONE ELSES SITE" and remove the ads? That you shouldn't be able to make the fonts bigger if you have bad eye sight?
      "I don't think they understood the mechanism at work here! It's more likened to WalMart placing their generic products on K-marts shelves!"
      Actually, they understand it perfectly: Your computer, your choice. You run your own browser on your own computer. You decide how things are displayed. If you want something to replace all ads on a page, this rules that it's perfectly legal.

      This ruling is not a ruling for malware and spyware. It's a ruling that says that you can do what you wish with YOUR OWN computer.

      --
      Clever signature text goes here.
  15. Re:Does it really matter what ad-ware does? by thinkliberty · · Score: 2, Informative

    I just block all ads with my host file. If their domain name resolve to 0.0.0.0 then there is nothing to display or popup

    http://www.google.com/search?q=host+file+block+ad& ie=UTF-8&oe=UTF-8

  16. This doesn't mean that malicious software is OK... by argent · · Score: 2, Insightful

    What it means is that when someone's malicious software directs you to a competitor's site, that's no worse than having that software on board in the first place.

    This could actually be good, because it may help when companies try and use similar law to deflect criticism and commentary.

  17. In related news, the Mafia by MobyDisk · · Score: 4, Funny

    In related news, the district court ruled that it is legal for the Mafia to use competing brands in their extortion efforts. A store owner complained that the local mafia was using Glock guns to threaten him when his store was selling Magnums. The store owner complained that it was not fair that his assailants were advertising competing products.

    The judge stated that "It does not violate trademark law to use competing products during an extortion effort." He added that this ruling does not make extortion legal, it merely states that the brand names of the products is not relevant.

  18. Re:Does it really matter what ad-ware does? by currivan · · Score: 5, Insightful

    As annoying as adware is, this is a great ruling because it's a step toward protecting the right to modify sites' content on the client side generally. For example there are Greasemonkyey scripts that do similar things, such as post B&N prices next to Amazon ones. Content providers would love to ban anything that modifies the way pages are shown, so I think we're obligated to side with the adware vendor on this one. How they got the adware on people's computers is another matter entirely.

  19. Re:So how could it be illegal if the servers are.. by Doc+Ruby · · Score: 4, Interesting

    We're always hearing about "offshore servers" which aren't bound by US law, so otherwise illegal transactions can be processed by them. But where is this mystical "offshore"? Most countries are also signatories to the "mother" WTP/WIPO treaties, of which the DMCA is merely the US implementation. Certainly most countries with Internet data centers, trained sysadmins, electricity... Where is this "Interzone", where, say, US copyright laws like DMCA can't be enforced, but people run Linux on P4s with >1000GB:mo bandwidth for <$200:mo, without having to sacrifice a goat to the CPU god every Tuesday?

    --

    --
    make install -not war

  20. This is A GOOD THING! And flawed analogies... by hkmwbz · · Score: 4, Insightful
    People, let's keep both feet on the ground here! This ruling means that we (users) are allowed to make changes to pages we are viewing through our browser. In other words, it confirms that Firefox's Greasemonkey/Opera's User JS is perfectly legal. It confirms that the webmaster has no right to tell you how to display things in your own browser (removing ads, anyone?).

    Now, spyware which installs itself on your computer and changes pages for you/displays ads is bad. But it would be terrible if we got a ruling saying that people aren't allowed to decide how pages display in their own browser.

    If someone installs a piece of software and they are well aware of the fact that it will replace ads on web pages, then fine! It's up to the user.

    What we need to deal with is software which tricks the user into installing ot, or which installs itself through the use of security flaws and similar things.

    Also, replacing ads on sites is nothing like McDonald's replacing Burger King's posters with their own in a Burger King restaurant. Burger King is Burger King's property, remember? Like the browser on your PC is under your control? I would be more like McDonald's giving you glasses that detect Burger King posters and replace them with McDonald's posters in the display in front of your own eyes. In a way, at least :) You chose to put those glasses on, and Burger King has no say in what you choose to look at.

    --
    Clever signature text goes here.
  21. This *is* great! by TheWatchfulBabbler · · Score: 2, Insightful
    One mistake many people make is confusing the legal precedent with the litigant. In this case, the case may benefit a fairly nasty adware company, but the case law upholds the concept that the owner of a website does not hold any special claim on your computer.

    There are a lot of spurious comparisons being made here to brick and mortar stores -- basically, "This is as if Burger King went in and put ads up all over a McDonald's." But that comparison is only true if the website owner has some kind of claim to your system.

    Think for a moment about where that ruling would take you. For one thing, take that pop-up blocker off your system.

    As I said in an anonymous post earlier, you don't get to choose the litigant, just the legal principle you wish enshrined. In this case: bad litigant, good outcome.

  22. Bad Result... Good Law by spiritraveller · · Score: 3, Informative

    This ruling supports the principle that people can do what they want with their own desktop, even if it covers up someone's advertising.

    Today it's an evil adware company. But tomorrow, it could be the AdBlock project.

    Don't lose sight of the forest for the trees.

    The trademark issue is significant. But my freedom to do what I want with my computer is more important.

  23. Parse it carefully - it's actually a victory by Shaper_pmp · · Score: 5, Insightful
    I'm with you on this, AC. This decision doesn't say anything about the legality (or otherwise) of malware - TFA specifically states:

    "Though the case did not directly address consumer frustration over adware, which often gets onto computers without their owners' full knowledge, the court said it viewed WhenU's ads as authorized."


    To me, this is something of a victory - it says nothing about the legality of malware/spyware (how the adware gets on your machine). However, it does enshrine in law your right to modify how content is displayed once it hits your machine.

    Basically, the decision says "it is legal to privately modify the content of a website for your own viewing pleasure". Think of this a a protective legal precedent for screenscraping, GreaseMonkey, etc, etc, etc.

    Now, we know that adware is usually installed without educated user permission, but that's an entirely different case. We've been given the permission to (at least privately) modify/remix/mash-up content. Now all we need is to make covertly installing adware against the law and the law will have at last got this/these issue(s) right.
    --
    Everything in moderation, including moderation itself
    1. Re:Parse it carefully - it's actually a victory by jp10558 · · Score: 2, Insightful

      You know, this is an issue that comes up with some crazy webmasters and Opera - see environmentalchemistry.com with Opera to see what I mean.

      I don't believe there is any distribution going on here - I'll bet the adware sends a URL to the servers. The URL the user visited. I can't see why the user cannot legally tell anyone where he went, in any capacity if he want's to (the assumption here).

      --
      Opera, Proxomitron-Grypen,GPG 0x0A1C6EE3
  24. Wrong Analogy by drayath · · Score: 2, Insightful

    As i see it this has nothing to do with the site that has popup's being shown on it.
    Just as is i could choose to switch of the site background color in MY browser, or open a second browser window showing a competitors site, or setup a sript to popup a window saying "Armidillo" whenever i open a webpage. Then this is purly my choice as it is my computer.

    Now if i have willingly installed some software that does the same thing, or opens some popup advert, again MY computer, i can do what i want.
    This is in effect what i see this ruling as.

    Now the issue of whether the user has really given informed concent for this particular piece of software may be a completely different issue, and outside this ruleing (after all was in the eula oyou agreed to, however dubious asuch a thing may be).

    For the analogies being used, if i want to wear a hat that whenever i look at a a house of a judge detects it, an card or heald out before my eye saying "American Justice Sucks", purly my choice as it only affect me, and i can choosen to install that hat on my head.....

  25. Re:So how could it be illegal if the servers are.. by Shalda · · Score: 3, Informative

    Offshore servers are pretty useless. If you're transmitting to the US you can be held to answer in a US court. Regardless of where your server might happen to be, if you have assets in the US banking system, they can be siezed. Likewise, if you set foot in the US, you can be arrested. Courts take a very broad view of their jurisdiction.

    In any event, regardless of where the servers might be, the courts interpretation of trademark law is correct. Despite some of the implications, this is still a good thing.

  26. Usage charges and lawfulness? by Xepherys2 · · Score: 2, Interesting

    AFAIK, telemarketers cannot call your cell phone due to the fact that you pay usage charges in the form of air time, and that call costs you money. If this is, in fact, correct, why can Adware and Spam artists get away with doing the same thing when the typical company pays usage charges (in the form of bandwidth) for their connectivity?

    As far as I'm concerned, my company loses money every time an ad pops up. How is this lawful?