Attorney General Andrew Cuomo announced that New York has achieved ground-breaking settlements with three major online advertisers for endorsing products and services on the Internet through deceptively installed programs known as “adware.” The implications of these settlements go beyond the amount of penalties….
The agreements, with Priceline.com Incorporated (“Priceline”), Travelocity.com LP (“Travelocity”) and Cingular Wireless LLC (“Cingular”) score the first time law enforcement has held advertisers accountable for ads presented through adware.
“Advertisers will now be held responsible when their ads end up on consumers’ computers without full notice and consent,” Cuomo said.
“Advertisers can no longer shield themselves from responsibility by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers. New Yorkers have suffered enough with unwanted adware programs and this agreement goes a long way toward clamping down on this odious practice.”
Today’s agreements require that each advertiser deliver online ads only through companies that:
Provide to customers full disclosure of the name of the applicable adware program and any bundled software;
Brand each advertisement with a highly visible and easily identifiable brand name or icon;
Fully describe the adware and obtain user approval to both download and run the adware;
Make it possible for consumers to remove the adware from their computers;
Obtain consent to continue serving ads to legacy users;
Require their affiliates to meet all of these same requirements.
Under the terms of the agreements, Priceline, Travelocity, and Cingular will pay $35,000, $30,000, and $35,000, respectively, to the State of New York as penalties and investigatory costs.
Assistant Attorney General Elizabeth Nieliwocki handled the settlements, with assistance from Assistant Attorney General Justin Brookman and under the direction of Assistant Attorney General In Charge Jane Azia.
