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AOL Unit Settles Adware Charges

by Glen Shapiro, LawAndTax-News.com, New York

18 August 2005

AOL subsidiary, Advertising.com Inc has reached a settlement agreement with the US Federal Trade Commission (FTC) over charges that it bundled adware programs with free anti-spyware software.

Speaking on behalf of the FTC earlier this month, a spokeswoman explained that:

"The company offered SpyBlast, a free security program to protect against Hackers. But consumers who downloaded SpyBlast also downloaded a form of software that followed their electric comings and goings and force-fed them pop-up ads."

The FTC took issue with the firm's failure to provide a licensing agreement for the software, observing that:

"If consumers had read the agreement, they might have seen a statement saying that by accepting the software, they agreed to receive marketing messages, including pop-up ads, based on their internet browsing habits."

Under the terms of the settlement agreement, Advertising.com is prohibited from making representations regarding the performance benefits of the SpyBlast software unless it "clearly and conspicuously" tells consumers that they will receive advertisements as well.

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