For immediate release:
January 29, 2007
Contact:
David McGuire
(202) 637-9800 x106
WASHINGTON -- Three high-profile companies that advertised their products and services through nuisance adware programs have agreed to pay fines and reform their practices, according to the New York Attorney General. The Center for Democracy & Technology (CDT) -- which in 2006 reported on the practice of mainstream advertisers funding nuisance adware distributors -- applauded the landmark settlements.
Attorney General Andrew Cuomo announced Monday that his office had reached settlements with Priceline, Travelocity and Cingular. The settlements arose out of the New York AG's in-depth investigation of DirectRevenue LLC, a New York-based adware distributor. Cuomo's office says the settlements mark the first time that advertisers have been held responsible for the deceptive practices of an adware distributor that they paid to advertise their products.
CDT Deputy Director Ari Schwartz praised the settlements. "The dirty secret about unwanted adware is that many legitimate companies -- knowingly or not -- fund its proliferation with their advertising dollars. Until we cut off that funding, there will always be a financial incentive for companies to bombard users with adware that they neither want nor need. We strongly applaud Attorney General Cuomo for taking this bold, innovative step to protect consumers."
In 2006 CDT published a pair of reports unraveling the funding mechanisms for nuisance adware and identifying mainstream companies that were doing business with adware distributors. Both reports are available
Schwartz and CDT Policy Analyst Alissa Cooper are available to comment on today's settlements. Reporters can e-mail them directly or call David McGuire (202) 637-9800 x106 to arrange a phone interview.