The suit seeks an injunction against Los Angeles-based
Intermix Media Inc, an account for all revenues earned, and
damages.
Spyware, software that is used to collect information about an
individual or organisation without their knowledge, and adware,
which generates pop-up ads, can be deposited on a computer as an
e-mail attachment or as a web site download.
"Spyware and adware are more than an annoyance," Spitzer said.
"These fraudulent programs foul machines, undermine productivity
and in many cases frustrate consumers' efforts to remove them from
their computers. These issues can serve to be a hindrance to the
growth of e-commerce."
He accused Intermix of installing a wide range of such
software on home computers without giving consumers proper notice –
all in breach of state laws that ban false advertising and
deceptive business practices.
The company, according to the Attorney General's office, owns
and operates a wide range of web sites that advertised "free"
software available for download, including screensavers, screen
cursors and games.
However, along with these programs, Intermix secretly
downloaded a number of ad-delivery programs, says the suit. One
such program was called "KeenValue" and it delivered pop-up ads to
its unsuspecting users. Another program, "IncrediFind," redirected
web addresses to Intermix's proprietary search engine. Other
programs placed advertising "toolbars" on users' screens.
The Attorney General documented at least 10 separate web sites
from which Intermix or its agents were downloading spyware,
providing either no warning or other misleading disclosures.
In this way, Intermix and its agents are thought to have
downloaded more than 3.7 million programs to New Yorkers alone, and
tens of millions more to users across the nation.
Intermix also went to great lengths to protect the spyware and
adware it secretly installed, says the Attorney General's Office.
The programs were hidden in unlikely locations on the computer and
could not be removed through a computer's "Add/Remove" function. In
addition, the programs omitted "un-install" applications, and even
reinstalled themselves after being deleted.
In a statement, Intermix responded:
"Many of the practices being challenged were instituted under
prior leadership, and Intermix has been voluntarily and proactively
improving these applications and related consumer disclosure and
functionality for some time."
"We expect to continue our discussions with the New York
Attorney General's Office and are still hopeful of reaching an
appropriate and amicable resolution."
