Anti-Spyware “Spy Act” Moving Through U.S. House

Federal legislation aimed at putting the brakes on or at least putting severe restrictions on spyware—including requiring its purveyors to get your permission before passing it on to you—is moving through the U.S. House, though it isn’t likely to make it to President Bush’s desk until lawmakers and tech groups can agree on just what spyware is or is not.

Recent research has shown spyware becoming a far more serious and widespread problem than even two years ago, with America Online and the National Cyber Security Alliance saying that 85 percent of computers examined last October had at least some form of spyware. And researchers IDC suggested in 2004 that people would spend $305 million a year to fight spyware by 2008.

The House is pondering two proposals and the Senate one, all introduced this year alone. The main mover is believed to be one by Rep. Mary Bono (R-California), known as the Spy Act, which would require companies to get your permission before putting any spyware or adware on your computer.

"The consumer should have the right to know what's going on with their computer,” Bono told reporters. “It's their property and they should know what's happening. The bottom line is that people cannot install something on your computer and track you and eat up all the processing power on your computer without your consent."

The Network Advertising Initiative, representing Internet-advertising firms like DoubleClick and 24/7 Real Media, is alarmed over the Bono bill’s potential impact on Internet advertising. “We don’t think it’s responding to an immediate need in the market,” said executive director Trevor Hughes, “and we think it has the potential for some pretty serious collateral damage against an industry that is really burgeoning right now.”

Tell that to Internet service providers like EarthLink, whose customers are at the highest risk of spyware infection, with even the least intrusive program good for delaying or damaging computer functionality, and who are pushing for fast government action against spyware.

"Spyware is obviously a problem that affects virtually all Internet users,” said EarthLink vice president for law and public policy Dave Baker, who cautioned the Bono bill won’t be a cure-all. “[W]e support congressional attempts to counteract this problem,” he said. “As was the case with spam we have to fight the problem on several fronts using legislation litigation enforcement, customer education, and technology solutions."