Next on FTC's hit list: Spyware
Mon Apr 19, 6:42 AM ET
By Paul Davidson, USA TODAY
After moving to curb spam with new legislation last year, federal regulators are poised to take on the newest scourge of the Internet: spyware.
The Federal Trade Commission will hold a workshop Monday to study technical and regulatory responses to spyware - programs surreptitiously buried in your computer that monitor your activities. A similar FTC workshop on junk e-mail last year led to an agency recommendation to pass an anti-spam bill. Congress responded.
But with spyware seen as a less clear menace, FTC officials are hesitant to crack down on it. And Capitol Hill staffers say new spyware bills are unlikely to pass this year.
The most common type of spyware is known as adware. It tracks your Web surfing and feeds the data to an advertiser. The adware then hits you with pop-up ads based on your interests. More nefarious versions of spyware can observe your keystrokes in order to steal your credit card information or identity.
"It's taking your information without your knowledge and giving it to a third party," says Dave Baker, vice president of Internet provider EarthLink.
Spyware often comes bundled with other applications, such as music file-sharing programs or free screensavers. Many tell users that by downloading the desired program, they are agreeing to accept the spyware. But critics say the notice is often inconspicuous. At least 20% of home PCs are spyware-infected.
House and Senate bills would require spyware firms to get clear user consent before downloads, identify the pop-up ad supplier and provide an easy way to get rid of the program. The Senate bill is broader, requiring user consent for any software planting.
Howard Beales, director of the FTC's bureau of consumer protection, says such constraints could gum up daily Web tasks. "The question is whether there's a way to draw a workable line," he says. "If you download a set of (updates) for Windows, it comes with a bunch of different programs. You don't want to have to go through this every time."
He says the FTC already has authority to prosecute spyware used for identity theft. And while the FTC could bring cases against spyware firms that are less than straightforward with consumers, that could be difficult if the only harm is a bombardment of pop-up ads, he says. The agency, though, might target spyware that hobbles PC performance, Beales says.
Eventually, he says, federal legislation may be needed to preempt a hodgepodge of state laws. A tough new Utah anti-spyware law is so broad it could force minors to give consent before using software to filter pornography, says Andrew McLaughlin, senior policy counsel for Google.
Companies such as Wells Fargo and Hertz are suing spyware firms that show consumers ads from rivals while they are visiting the companies' Web sites.
"It's unfair competition," says Washington, D.C., lawyer Terry Ross, who represents several plaintiffs.
But Avi Naider, CEO of adware firm WhenU.com, says it's a time-tested way to advertise.
Mon Apr 19, 6:42 AM ET
By Paul Davidson, USA TODAY
After moving to curb spam with new legislation last year, federal regulators are poised to take on the newest scourge of the Internet: spyware.
The Federal Trade Commission will hold a workshop Monday to study technical and regulatory responses to spyware - programs surreptitiously buried in your computer that monitor your activities. A similar FTC workshop on junk e-mail last year led to an agency recommendation to pass an anti-spam bill. Congress responded.
But with spyware seen as a less clear menace, FTC officials are hesitant to crack down on it. And Capitol Hill staffers say new spyware bills are unlikely to pass this year.
The most common type of spyware is known as adware. It tracks your Web surfing and feeds the data to an advertiser. The adware then hits you with pop-up ads based on your interests. More nefarious versions of spyware can observe your keystrokes in order to steal your credit card information or identity.
"It's taking your information without your knowledge and giving it to a third party," says Dave Baker, vice president of Internet provider EarthLink.
Spyware often comes bundled with other applications, such as music file-sharing programs or free screensavers. Many tell users that by downloading the desired program, they are agreeing to accept the spyware. But critics say the notice is often inconspicuous. At least 20% of home PCs are spyware-infected.
House and Senate bills would require spyware firms to get clear user consent before downloads, identify the pop-up ad supplier and provide an easy way to get rid of the program. The Senate bill is broader, requiring user consent for any software planting.
Howard Beales, director of the FTC's bureau of consumer protection, says such constraints could gum up daily Web tasks. "The question is whether there's a way to draw a workable line," he says. "If you download a set of (updates) for Windows, it comes with a bunch of different programs. You don't want to have to go through this every time."
He says the FTC already has authority to prosecute spyware used for identity theft. And while the FTC could bring cases against spyware firms that are less than straightforward with consumers, that could be difficult if the only harm is a bombardment of pop-up ads, he says. The agency, though, might target spyware that hobbles PC performance, Beales says.
Eventually, he says, federal legislation may be needed to preempt a hodgepodge of state laws. A tough new Utah anti-spyware law is so broad it could force minors to give consent before using software to filter pornography, says Andrew McLaughlin, senior policy counsel for Google.
Companies such as Wells Fargo and Hertz are suing spyware firms that show consumers ads from rivals while they are visiting the companies' Web sites.
"It's unfair competition," says Washington, D.C., lawyer Terry Ross, who represents several plaintiffs.
But Avi Naider, CEO of adware firm WhenU.com, says it's a time-tested way to advertise.