Utah Regulating Spyware, Adware

SALT LAKE CITY - Utah became the first state in the nation this week to pass a law regulating spyware and other advertising software.

On Wednesday, Utah Gov. Olene Walker signed a law allowing individuals and companies to sue in Utah for unsolicited spyware advertising on their proprietary websites.

HB323, which goes into effect May 3, makes it illegal to create or install spyware, which is software that monitors Internet activity and sends that information elsewhere, usually without the user being aware of it or consenting to it.

The Utah law bars companies from installing software that reports its users’ online actions, sends any personal data to other companies, or pops up advertisements without permission. It also bars “context based” tools from triggering unrelated advertisements based on visiting Web sites on a certain topic.

The law does contains loopholes, however. Advertisements served by ordinary HTML or JavaScript are exempted, as are the ordinary “cookies” often used to help personalize Web pages.

The Software & Information Industry Association (SIIA) said Utah’s new law was ratified to hastily. “[The state is] moving too far without looking at what the issues are,” said Mark Bohannon, general counsel and senior vice president of public policy for SIIA.

Most industry groups, he said, only became aware of the piece of legislation in late February.

Bohannon said he is afraid the bill will become a model for other states to follow.

Lawmakers in Iowa and California also have introduced their own spyware control proposals in the past month, and federal lawmakers and regulators already are looking at the issue. A U.S. bill on the issue was drafted in February by the authors of the so-far ineffective Can-Spam Act -- Sen. Conrad Burns (R-Mont.), Ron Wyden (D-Ore.) and Barbara Boxer (D-Calif.).

The legislative trend is raising worried eyebrows among some Internet businesses, which are concerned that state laws may unintentionally hamper some means of doing business on the Internet.

“What’s called spyware is not innately a bad thing,” Emily Hackett, executive director of the Internet Alliance, a trade organization that includes America Online, eBay and Microsoft, told reporters. “What’s called a pop-up is not innately a bad thing.”

Earlier this year, the U.S. District Court for the Southern District of New York issued a preliminary injunction against adware company WhenU, ruling it violated trademark laws. That decision is currently on appeal before the 2nd U.S. Circuit Court of Appeals.

Meanwhile, a court in Germany on Thursday issued a preliminary injunction against Claria Corp. prohibiting pop-up ads, on Hertz Corp.’s website. Claria was previously known as Gator Corp.

The decision in Cologne is the first court ruling in Germany related to adware software.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

European Industry Initiative Open Mind AI Asks EU to Be Included in AI Legislation Debate

New European industry initiative Open Mind AI penned a letter asking EU authorities to include adult companies and creators in ongoing discussions on setting up a legal framework for AI content.

Canadian Law Professor: Proposed Age Verification Bill 'Will Make Things Worse'

Leading Canadian newspaper The Globe and Mail this week published an op-ed written by a legal scholar outlining fundamental issues with the Conservative-backed age verification bill currently making its way through Parliament.

UK Labour Government Confirms it Will Continue Baroness-Led 'Porn Review'

The U.K. Labour government of Prime Minister Keir Starmer has confirmed it will continue the controversial full review of British pornography laws ordered by former Tory Prime Minister Rishi Sunak in July 2023.

AEBN Publishes Popular Searches for July and August

AEBN has released the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

SWR Data Survey Probes Concerns About Political Attacks on Industry

SWR Data, an adult-sector market research firm led by industry veterans Mike Stabile and MelRose Michaels, has released data from its upcoming 2024 State of the Creator report, illustrating creators’ concerns about political attacks on the industry.

FSC Urges SCOTUS to Strike Down 'Unconstitutional' Texas Age Verification Law

The Free Speech Coalition (FSC) urged the U.S. Supreme Court through a brief filed Monday to strike down Texas’ age verification law as unconstitutional.

Japanese Manga Industry Hit by Credit Card Companies' Anti-Porn Restrictions

Japanese manga retailers are reporting pressure from multinational credit card companies — many based in the U.S. and targeted by anti-porn religious conservatives — to censor their content if they wish to maintain their current payment processing arrangements.

Netherlands Government Continues Porn Probe Following Abuse Allegations

The Dutch government plans to continue investigating the local porn industry in the Netherlands, following a series of abuse allegations involving photographer and self-styled “model scout” Daniël van der W.

Clips4Sale Releases '20 Years of Fetish' Data Survey

Clips4Sale (C4S) has released a report based on 20 years of data and analysis to show how kink and fetish tastes have changed since the site began.

Grooby, Yanks Ink Website Management Deal

Grooby will begin managing Yanks.com under a new company, Blue.xxx.

Show More