Most individuals complain about spyware without doing anything about it. Not so for Eric Howes, a graduate student at the University of Illinois at Urbana-Champaign and a frequent visitor to our Security forum. Via his website, Howes has waged a war on spyware in all its various incarnations for quite some time, educating users about their on-line security. His latest effort is attempting to get the FTC to fully understand spyware in the hopes they can better leash the increasingly irritating problem; despite claims from the industry that the spyware threat is being overblown by an "anti-advertising industry".

As we discussed in a recent interview with the Center for Democracy and Technology, before legislation can be drafted to stop spyware, the term "spyware" itself needs to be properly defined. To that end the FTC has begun looking at the matter more seriously, and has been receiving public comment via their website. Though discussion of spyware has been raging around the internet for years, it is only now truly catching the eye of politicians as consumers become more aware of the garbage filling their PC's (and subsequently more vocal).

Obviously Howes isn't alone in his quest to be heard. PCPitstop, a website recently sued for libel for identifying Clarion corporation's Gator software as spyware, have filed their own comments (see pdf). PCPitstop's numbers reveal the enormity of the problem and the primary argument: consumers aren't being clearly asked permission to have software installed on their PC's. A survey found some 34,672 PC's running the Gator application, with 75% of those users unaware the application even existed.

Getting users explicit consent is the primary goal of SPYBLOCK (Software Principles Yielding Better Levels of Consumer Knowledge), a bill working its way through Congress that would require all software installations to require an "OK" confirmation. Companies like Yahoo, Microsoft, CNET, Amazon, and AOL have been very busy lobbying Washington; worried that new laws, particularly if they're overly broad, could impact many of their business relationships.

Those companies were delivered a serious wake-up call last week in Utah, after the state decided to make all spyware illegal. Utah lawmakers made no such distinction between spyware, malware, or any other application designed to force-feed consumers advertisements or track their browsing habits.

This distinction is the loophole many companies like Clarion are trying to squeeze their way through in order to avoid being held accountable for sleazy business tactics in the coming political firestorm. As Howes recently noted in our forums, C2 Media - like Clarion Corp., is trying to argue they are purveyors of "adware", not "spyware". C2 Media is responsible for Lop.com (see spywareinfo), and have become one of the more hated industry names on the internet.

C2 Media's comments (pdf) to the FTC are downright conspiratorial in nature:

"Much of the "evil" things heard about "adware" are over-exaggerations packaged by the "anti-advertising industry" as a "fear sale" pressure tactic," the company argues. "This approach is consistent with the interests of an "anti-adware" company in fostering fear and discontent on the part of the general public regarding advertising software. The more the public fears, the more the "anti-advertising industry" profits."

Profits made off of the most effective (and totally free) spyware removal tools: Spybot Search and Destroy and Adaware? Profits made by Eric Howes? C2 Media argues that they and companies like them "should not be penalized for creating innovative new technologies that allow advertisers the opportunity to more easily reach targeted consumers."

Irritated by comments from C2 Media, Howes has issued his own comments (pdf) to the FTC, all of which are available via his latest post to our security forum. "I sincerely hope that the FTC would see through such bluster and excuse-making and find a way to offer citizens and consumers the protection they need," Howes concludes.

On April 19, 2004, from 8:30 a.m. until 5:30 p.m, the FTC will host a public workshop, entitled "Monitoring Software on Your PC: Spyware, Adware, and Other Software." Those concerned about spyware should either attend, or be sure to file comments while they still can. Complaining will not be enough where industry lobbyists are concerned.