Internet users often receive Claria's advertising software – or adware – when they download other software, such as Kazaa's popular file-sharing application. Often they ignore the messages on screen that explain what is being installed – so may be unaware that they have adware running their computers.
The software examines keywords, URLs and search terms in use on the user's browser and then selects which ads to display to that user. These ads often refer to competitors of the site being visited and are therefore highly controversial. This triggered numerous legal actions against both pop-up ad firms and their clients.
According to CNET News, Claria last month settled a combined action brought by financial services firms Wells Fargo and Quicken Loans. Other actions, brought by such firms as UPS, Hertz, LL Bean, Tiger Direct and Six Continents, have also been recently settled.
The settlements, no details of which have been released, leave a question mark over the legality of advertising software. Some suits against Claria, including one filed in April by on-line florist Teleflora, are ongoing. The issue may also be resolved when similar actions, brought against rival pop-up ads firm WhenU, finally reach court.