Unstoppable Adware
I read an interesting report today about the adware and spyware industry by Massachusetts lawyer and spyware researcher Ben Edelman.
Edelman says Cingular Wireless and Travelocity are indirectly supporting the adware and spyware industry with ad dollars despite efforts by both companies to cut ties with that form of advertising.
Edelman claims that ads for both companies are being displayed by adware companies whose software programs are installed on users PCs without consent. He says adware is inserting ads for Cingular and Travelocity on Web sites that include Google and dating site True.com--without either of the site's consent or knowledge. (see example below and the ad that has been inserted into the Google search site)
Cingular Wireless and Travelocity told me that they have policies not to advertise with adware or spyware firms. Travelocity said it is investigating these allegations and cautioned a rush to judgment, stating Edelman's report "could be false." Cingular Wireless says it doesn't advertise via adware companies. "Given the infinite complexity of the Web, we can't say with 100 percent certainty that these things will never happen," says Mark Siegel, Cingular spokesperson.
It's hard to say, if Edelman's claims are true, how much you can blame Cingular or Travelocity for its ad dollars going to adware proliferators. As one source for this story pointed out, ads are bought and sold so many times it's hard to keep track of where they end up. I found out just how hard first hand when helping report the story The Hidden Money Trail in 2005.
Edelman agrees it's hard, but points out companies with stated policies against ads ending up in adware need to do more to enforce their policies.
Violation of Assurance Agreement?
The claim that either of the two companies ads are appearing in adware and spyware is of significance in light of a settlement both companies struck with the New York Attorney General in January.
That is when both companies, including Priceline.com, agreed to pay fines ranging from $30,000 to $35,000 relating to a case brought against Direct Revenue, an adware firm, by the New York State Attorney General. The companies marketed their services through Direct Revenue, a company that former New York Attorney General Eliot Spitzer sued last year for installing ad-serving software without consumers' consent.
The Direct Revenue case is still pending. But as part of the settlement with the state of New York Cingular, Priceline.com, and Travelocity each agreed "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."
A violation of the agreement by one of the companies could be grounds for legal action against that firm, according to sources within the New York Attorney General's office.
Following the Money
Edelman's research points fingers at a number of adware networks and adware bundlers who are allegedly responsible for distributing ads to adware and spyware companies. One of those firms is an ad network called Vizi Media who Edelman says distributed Travelocity ads to ad network Yieldx who passed ads to an adware software company called Fullcontext.
"FullContext is a company that has proven to be one of the worst scammers in this industry. Our team has assisted other industry companies in not only banning them from our network but from others as well," said Pesach Lattin, chief executive officer of Vizi Media.
Fullcontext did not reply to my requests for an interview. As of the time this story was published the Web site only displays the message "We are sorry but this service is no longer provided."
Pesach says "when dealing with companies like Fullcontext--we catch them, shut them off." He says that unscrupulous adware and spyware companies on rare occasion present a problem for his ad network.
According to Yieldx's parent company Ad Median is yet another company Ad Singular passed the ads on to Fullcontext. "We are the victims here," says Brian Lematta, manager of Ad Median. He Yieldx terminated its relationship with Ad Singular "twenty minutes after finding out what was going on."
Edelman says he has tracked more than a dozen examples of Cingular and Travelocity ads served by spyware and adware since its agreement with the state of New York. In addition to Fullcontext Edelman alleges spyware applications TargetSaver and Deskwizz/Searching both were also used to serve ads from both Cingular and Travelocity.
On Thursday the U.S. House Subcommittee on Commerce, Trade, and Consumer Protection meets for a hearing on "Combating Spyware: H.R. 964, The Spy Act."
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i don't think this is Cingulars or Travelocity fault at all. They might have sold there ad to a willing buyer, but it is up to that buyer what to do with that ad and if they want to breach rules and regulations with spy ware/ad ware then thats their fault, do not blame Cingular and Travelocity...
people are just sue happy, settle down.
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