Direct Revenue Settlement Spells Changes For Spyware Practices
A settlement in the case of Sotelo vs. Direct Revenue received preliminary approval by Federal Judge Virginia Kendall last Friday afternoon. Direct Revenue, the NY-based operator of Best Offers Network and Soho Digital International, is faced with a potential court-ordered injunction to 23 new business practices. With Judge Kendall’s final approval, which will be considered at a hearing on April 24, 2006, the case could have powerful implications for the business model of all adware and spyware companies.
Among the practices Direct Revenue may be forced to implement include receiving the clear consent of its users, maintaining the complete privacy of users, refraining from collecting any personal data, facilitating the easy removal of software, and avoiding immersion in websites which target young users.
The lawsuit, initially filed on behalf of Mr. Sotelo, became backed by the Illinois community of resident-computer owners. “Illinois computer users now have the power of a federal court order on their side,” said Shawn Collins of The Collins Law Firm, Esq., co-counsel for the plaintiff. “If Direct Revenue goes back to the old way of doing business—whether on its own or with the help of unscrupulous partners—we will move immediately to see that the federal court order is enforced.”
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