In recent years, a variety of anti-spyware tools have emerged to help consumers protect their computers from malicious spyware and adware. But this development, while welcome, addresses only one aspect of the growing spyware problem. Even as we take advantage of improving tools to prevent spyware from reaching us, it is vital that the law enforcement community go after the source of the problem. State law enforcers are beginning to make strides in investigating and prosecuting some of the worst spyware offenders. The attorneys general in the states of New York, Washington and Texas have been particularly active in pursuing spyware purveyors.

New York authorities filed the first spyware lawsuit in the United States against adware distributor Intermix, a company best known for being the creator of MySpace. Intermix was required to pay $7.5 million in penalties, the largest court settlement to date. The New York attorney general is currently investigating Direct Revenue, another big-time adware distributor. When that case is resolved, whether by trial or court settlement, it is sure to reverberate throughout the adware industry.

Washington is leading the way at the state level, filing five lawsuits in 2006. The suits have targeted a wide array of spyware behaviors, from software that pops up fake security “alerts” to programs that provide no uninstall utility. Many of the Washington cases focus on deceptive software that preys on people’s heightened concern about computer security. Some of the cases have brought thousands of dollars in monetary relief to Washington consumers. Hopefully, that trend will continue with future cases.

Texas authorities have filed only one spyware lawsuit to date, but it garnered massive attention because it targeted Sony BMG Music. In 2005, the entertainment company sold millions of CDs containing secret anti-piracy “cloaking” software. As a result, the Texas attorney general claimed that Sony had violated the state’s new spyware law. The recently announced settlement agreement requires Sony to provide substantial relief to consumers and obligates Sony to clean up its anti-piracy software in the future.

These enforcement efforts are welcome developments for consumers, security researchers and consumer advocates, but more help is needed. If you have dealt with spyware or malicious adware on your computer, notify your attorney general’s office about your experience (visit www.naag.org to get contact information for your state). Urge your attorney general to join the fight against spyware, and send a copy of this newsletter to show the depth of the spyware problem and what other attorneys general are doing about it. Because spyware is a moving target, it requires everyone’s attention, from litigators and legislators to technologists and consumers. Encourage your state to get involved!

 

Ponemon Institute