WhenU Sues to Stop Utah Spyware Law

Share this content:
Adware maker WhenU.com filed a lawsuit in Utah state court to quash the recently enacted anti-spyware law on the grounds that it violates existing federal and state law.


WhenU.com's motion, filed in Salt Lake City judicial court, said the law, while designed to protect computer users' privacy, actually serves to protect online merchants from competition.


Utah's law, set to take effect May 3, bans software that delivers ads based on a user's Internet behavior.


WhenU's SaveNow software pops up ads tied to words the user types into the browser or search engines. SaveNow is bundled with popular software such as file-sharing service BearShare. Users agree to the display of SaveNow ads on their desktop in exchange for the free software. The company says response rates average 5 percent for the ads and can run as high as 20 percent for instant coupon offers.


Its adware and that of Claria have raised the ire of Web publishers and online businesses, who assert that the ads violate copyright and trademark law and amount to unfair competition. WhenU and Claria are both embroiled in multiple legal actions brought by online businesses, including Utah-based 1-800 Contacts.


WhenU asserts that the Utah bill was passed by the legislature and signed by Gov. Olene Walker "due in large part to the legislative lobbying efforts of a single company, 1-800 Contacts."


Claria cited the Utah law as a major risk factor in its filing for a $150 million stock offering last week. The company said the law would stop it from doing business in the state.


Loading links....
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here