Fined for Adware - Priceline, Travelocity, Cingular

[Linda Buquet]

The New York Attorney General is holding companies accountable for their adware advertising in a groundbreaking new case. This is the 1st time that legal action has been taken against the actual advertisers. Three major brands - Priceline, Travelocity, and Cingular have agreed to pay fines and reform their practices after being accused of advertising through nuisance adware programs according to the New York Attorney General. Priceline, Travelocity, and Cingular agreed to pay fines of $35,000, $30,000, and $35,000, respectively, to the State of New York.
The SearchAnyway Blog reports on the story.

Press Release - NEW YORK, NY (January 29, 2007) - Attorney General Andrew Cuomo today announced that New York has reached ground-breaking settlements with three major online advertisers for promoting products and services on the Internet through deceptively installed programs known as “adware.” The agreements, with Priceline.com Incorporated (“Priceline”), Travelocity.com LP (“Travelocity”) and Cingular Wireless LLC (“Cingular”) mark the first time law enforcement has held advertisers responsible for ads displayed 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 insulate themselves from liability 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.”

[AffiliateGuild]

Personally, I think that's excellent news.

It forces the ad agencies to reveal where they run their ads because
merchants won't want to risk a fine. If you've ever run CPM campaigns,
then you know the agencies are very guarded about their network info.
They will refuse to tell you anything about it unless you drill them
mericlessly and even then, it's limited.

I even experienced a major agency that swore my ads were only being
run to users who had done a double opt-in to their desktop software,
and yet I got my own ad in spammed email. I came unglued.

They were buying traffic from an out of USA spammer who got the
ads infront of huge numbers of eyeballs. What they reported to me
was not the same traffic data as what he ran for them ... it's all a
numbers game.

So, I'm glad to hear this ruling. I also think this ruling will help promote
the USA based businesses. Advetise outside the USA and you have no
controls. Advertise inside and there are rules to be followed. Those rules
make our Industry much more respected and viable.

[reina]

I currently have Cingular as a cell provider and i owe them a lot of money right now. My service has been suspended and they have been calling me like every day despite me paying small amounts and doing what I can. I am not surprised that this is going on. Wow!

[Chrissie]

I am also glad to see something is being done! These big companies are under the impression they can do whatever they want because of their name. I hope they do some more cracking down. In the end it's better for ALL OF US!