FTC May Shame Adware Advertisers

The U.S. Federal Trade Commission is considering using humiliation as a tactic in deterring companies from using adware as a means to advertise their products, a commissioner said Thursday.

The comments came from Commissioner Jon Leibowitz at an event held by the Anti-Spyware coalition in Washington, D.C. There, Leibowitz said in an interview with CNET News.com that he felt such a program would be effective in curbing the ever-growing problem of adware.

The term "adware" refers to hidden programs that pop up ads, usually based on a user's search or web browsing habits.

The advertisers would be added to a public list of companies who support adware, and Leibowitz said he would recommend going even further and publicly humiliating companies who do not stop.

While some applaud the move, others question it, pointing to the fact that some companies who advertise through adware may not know their advertising is appearing in such a fashion.

"Some affiliates cause merchants' ads to cover competitors' sites -- a merchant's ad might appear through spyware without the merchant knowing about, intending, or requesting this result," spyware expert Ben Edelman has said.

He has suggested that companies need to become more diligent and aware of whom and where their online advertising dollars are being used. The "intermediaries" are the ones to blame -- as they are allowing the advertising to be used in such a manner.

Such a plan would require the approval of the full FTC before taking effect, however looking at previous statements from other commissioners it appears that the agency may be prepared to take such drastic measures.