New York sues alleged spyware company

By Steve Malone

Posted on 29 Apr 2005 at 14:50

New York is suing one of the US's biggest internet marketing companies. Attorney General Eliot Spitzer, says that the company is one of the biggest sources of spyware and adware, which has it has been distributing to millions of unsuspecting PCs.

The state of NY is suing the Los Angeles-based Intermix Media that provides a range of sites for offering free software downloads such as e-cards and screensavers. It runs such sites as FlowGo.com, GameRival.com, CasesLadder.com and MadBlast.com.

New York has taken legal action following a six-month investigation. Researchers found that at least ten separate web sites connected with Intermix were downloading spyware, via more than 3.7 million programs distributed to New York users, and tens of millions more to users across the US.

During the investigation, the Attorney General's office found that Intermix had installed a wide range of advertising software on home computers. The State alleges that the programs would then redirect web addresses, add toolbars and deliver pop-up ads all without the owners' permission.

The Attorney General gave as an example a program called 'KeenValue' that delivered pop-up ads while 'IncrediFind,' redirected web addresses to Intermix's own search engine. Other programs are alleged to install advertising 'toolbars' on users' screens.

Intermix claims to have partnerships with some of the biggest brands on the web including AOL, MSN and Earthlink. Many of these companies have been vocal in their condemnation of spyware.

While spyware itself is not illegal, the lawsuit is being brought under the state's General Business Law, which outlaws false advertising and deceptive business practices.

However, spyware has rising up the agenda of both internet security companies and lawmakers alike in the past year. Most security companies including McAfee have issued warnings to users to guard against the dangers of spyware. Meanwhile both state and federal legislatorshave passed bills that seek to outlaw the practice.