America Online's Advertising.com Inc., after distributing the free security program, SpyBlast, without informing consumers of its hidden adware content, is being forced to "clearly and prominently" disclose the information by the Federal Trade Commission.
Users who installed the anti-spyware software were quickly inundated by pop-up ads that AOL is notorious for, based on their Internet browsing habits.
Spyblast, intended to defend against hackers, did not require reading the terms of use agreement prior to installation, alerting users to the presence of intrusive adware.
The settlement of federal charges brought forth by the FTC also requires Advertising.com to keep records of certain activities so the federal agency can monitor their compliance.
The orders only affect Advertising.com, acquired by AOL last year for $435 million, and not AOL itself.
Advertising.com distributed the software as part of an "experiment" in 2003, before AOL purchased the company, according to AOL spokesman Andrew Weinstein.
"We support the FTC's efforts to fight spyware and we will continue to protect our member from those problems," Weinstein said.
Jason L. Miller is a staff writer for WebProNews covering technology and business.
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