New York - Wireless carrier AT&T (Cingular) -- along with Travelocity.com and Priceline.com -- has agreed to change its policies when running online advertisements served through deceptively installed programs known as "adware."

The move was forced through a settlement with New York Attorney General Andrew Cuomo's office, the terms of which also call for the companies to each pay around $30,000 in penalties and investigatory costs.

Cuomo said the case marks the first time law enforcement has held advertisers responsible for ads displayed through adware, or applications that are often installed without users' knowledge, deliver pop-up ads and monitor users' actions, and are difficult to uninstall.

The settlement calls for Cingular, Travelocity.com and Priceline.com to provide full disclosure and descriptions of any adware; obtain consumer consent to both download and run any adware; and require affiliates to meet the same requirements.

"Advertisers will now be held responsible when their ads end up on consumers' computers without full notice and consent," Cuomo said in a statement. "Advertisers can no longer insulate themselves from liability by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers."

Related Links:
http://www.oag.state.ny.us/press/2007/jan/jan29b_07.html