Slap The Gator

A German court has ruled against Clara (formerly Gator) stopping them from putting their spyware-driven advertising on the Hertz rental car site in that country.

The company, who most people know as Gator, tricks consumers into downloading and installing seemingly innocuous utility software - weather info, a clock, an online wallet, etc - and burries in the tiny scrolling terms and conditions the right to watch the consumer as they use the internet, compile information about them, and then display pop-ups or overlay ads. The company claims that users 'agree to receive advertising based on their actual online behavior'. From a legal standpoint they probably do. But in reality only a tiny fraction of users have any idea of what's going on - they just wanted to see the weather. So when the onslaught of pop-ups begin, most users don't know that it is their clock or weather utility causing it, so they have to buy spyware removers, live with harrassing pop-ups, or watch their computing experience generally deteriorate.

Of course, many people figured out what the company was up to, and IT dept's and techies everyware spend countless hours removing the Gator/Claria software and educating unsuspecting users. From a business perspective, the company has taken several amazingly irresponsible courses of action - they changed their name (hoping to leave their image behind), and they started suing people who were warning users about them.

I have no problem with their technology, only their tactics. If it was a true opt-in network it would be fabulous. It would also be 1/100th the size or less. I actually agree that consumers have the right to see ads from other sites triggered by their behaviour and the web sites they visit. I don't agree that publishers should control the environment when it is on my desktop. If I go to the Hertz counter at an airport, they are free to make sure no Avis ads play over their radios. If I browse to the Hertz site, and I've intentionally and knowingly installed some software to show me alternative offers, that's my right.

But as it is, consumers aren't playing along by choice. The FTC should require that their downloads carry extremely clear disclaimers that usability tests prove a strong majority of consumer understand: "By downloading and installing this software you're agreeing to have your behaviour monitored and that you will be forced to view additional advertisements which are based on the information we collect about you."

Anyone involved in online advertising should avoid spending money with this company on moral grounds. They're network is reportedly effective, but so is SPAM. Until they completely clean up their act, I hope more courts rule against them and more legal troubles come their way.

Update: SearchBlog reports the spyware kings are going public. Yes, we have a problem.

Posted by Craig Danuloff at April 2, 2004 10:16 AM