Monday, March 19, 2007

Spyware Bills Should Zap Advertisers

A House subcommittee is again considering spyware legislation that would prevent the distribution of software that takes control of computers without user consent. While federal legislation of this type is needed, the bill as introduced is questioned as being so broad that it could limit innovation.

But in addition to creating penalties for adware/spyware companies that cross the line, the legislation should remove the incentive for developing such software by penalizing the affiliates and advertisers who pay these companies. The ever-vigilant Ben Edelman gave kudos to New York State for forcing companies that hire spyware companies to discontinue the relationships. While some advertisers haven't lived up to the deal, the idea is right and should be included in federal legislation.

To me this is analogous trying to enforce immigration without penalizing the companies who hire the workers. Our current set up gives only a slap on the wrist to companies who hire illegals, who face deportation even though they are benefiting slightly compared to their employers. If national advertisers started getting smacked with seven-figure fines for dealing with spyware companies, you betcha they'd start doing do diligence before and quick exits after they form a questionable partnership.

Posted By John Gartner at 09:56 AM
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