Direct Revenue Fallout: Priceline, Cingular, and Travelocity

I posted a ways back about the Direct Revenue case in NY.  Now I see that the New York AG's Office went after several of Direct Revenue's customers.  Priceline, Cingular, and Travelocity have all settled with the State of New York, pursuant to pretty consumer-favorable settlement terms [via Instapundit]:

The three companies have agreed to only advertise through companies that provide to consumers full disclosure of the name of the applicable adware program and any bundled software, brand each advertisement with a prominent and easily identifiable brand name or icon and fully describe the adware and obtain consumer consent to both download and run the adware.

Advertising companies must make it practicable for consumers to remove the adware from their computers, obtain consent to continue serving ads to legacy users and require their affiliates to meet all of these same requirements.

The agreements also require Priceline, Travelocity, and Cingular to engage in due diligence with respect to selecting and utilizing adware providers. 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.

These companies are not alone.  As Ben Edelman notes, many larger/established companies potentially advertise via adware:
Citi, HSBC, True.com, and United Airlines. I received ads from technology companies Netzero and People PC (ISPs), Sage Software (makers of the Act! contact manager), Sprint, T-Mobile, and Vonage.
The lines between legitimate marketing-targeting software and adware are admittedly blurry.  A quick read of the Direct Revenue hearing transcript [pdf] reveals Direct Revenue likely crossed the line.  Larger, sophisticated companies -- particularly internet-based companies -- should have the due diligence in place to avoid any dealing with companies that get close to crossing the line. 

[In addition to Ben Edelman's site, check out the Center for Democracy and Technology.]
 
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