Claria’s Practices Don’t Meet Its Lawyers’ Claims

Among the highlights of my winter holiday reading was a MediaPost interview of Reed Freeman, chief privacy officer of Claria. Freeman makes a series of claims about Claria’s practices — setting out high standards that he claims Claria already meets. As it turns out, his claims are in multiple instances verifiably false.

Removing Claria Programs – Neither “Intuitive” Nor “Standard”

Freeman claims that Claria has “the intuitive and standard Windows uninstall process.” I disagree.

Install Claria software in a bundle with Kazaa, and there will be no “Claria,” “Gator,” or “GAIN” listing in Control Panel’s Add/Remove Programs. Same for the other programs that bundle Gator (like DivX and Grokster). Instead, users who want to remove Gator are required to figure out that they need to select the “Kazaa” entry in Add/Remove Programs. That’s neither intuitive nor standard.

Claria admittedly sometimes tells users about its unusual removal procedure. Five pages (370+ words) into Claria’s license (as shown by Kazaa), Claria mentions “If you would like to stop receiving GAIN-branded advertisements, you will need to remove all GAIN-Supported Software on your computer using … Add/Remove Programs.”

Screen-shot showing that when  Zango comes with Secret Chamber, Zango receives a separate entry in Add/Remove Programs.  Claria's Gator, in contrast, lacks such an entry.Screen-shot showing that when Zango comes with Secret Chamber, Zango receives a separate entry in Add/Remove Programs. Claria’s Gator, in contrast, lacks such an entry.

But Freeman doesn’t claim that Claria’s uninstall process is well-documented. He claims it’s “standard.” To the contrary, when other programs come in bundles, they generally include separate entries in Add/Remove Programs. For example, when RealPlayer comes with Google Toolbar, each program gets a separate Add/Remove listing. Even among so-called “adware” programs (that monitor users’ web browsing and show advertisements), Claria’s approach is unusual. When 180solutions Zango comes bundled with other programs (like Zango Games’ Secret Chamber), Zango has its own entry in Control Panel. See screen-shot at right.

Neither is Claria’s uninstall procedure “intuitive.” The intuitive way to remove an unwanted program is to find it, by name, in Add/Remove Programs. Claria makes the process harder by forcing users to figure out which programs bundled which — an unnecessary procedure that is not “intuitive.” The process becomes even more difficult when Claria cross-promotes its various products: Once a user receives Claria’s advertising-display software, Claria often shows pop-ups that encourage installation of other Claria programs, such as clock synchronizers and weather monitors. As a result, many Claria users run multiple “Gator-supported” applications, each of which must be separately identified and removed to complete Claria’s so-called “intuitive” uninstall.

Also nonstandard is Claria’s prohibition on using “unauthorized” removal methods (namely, removal tools like Ad-Aware and Spybot). See my earlier Gator’s EULA Gone Bad.

One-Step Install, Harder Uninstall

A Claria drive-by installer, installing Claria software (without any further request for consent) if users press Yes.A Claria drive-by installer, installing Claria software (without any further request for consent) if users press Yes.

Freeman later reports “The FTC has long taken the position that consumers should be able to get out of the bargain just as easily as they got into it.” Turning to Claria’s practices, he claims “you can get into our bargain by responding to an ad, and you can get out of our bargain by responding to an ad.”

Freeman makes it sound like removing Claria is as easy as getting Claria, but that’s just not the case. Claria software can become installed after only a single click on a single “Yes” button in a Claria “drive-by” ActiveX pop-up (like the one at right).

Claria uninstallation screen, adding additional steps to attempts to remove Claria software.Claria uninstallation screen, adding additional steps to attempts to remove Claria software.

In contrast, removing Claria requires a longer procedure. At best, click Start – Settings – Control Panel – Add/Remove Programs, then find the installed Claria or third-party program, press Remove, and press Next twice (eight clicks total) . The final two clicks are necessary to decline Claria’s pleas to remain installed. (See the screen-shot at left.) Through this procedure, Claria requires triple confirmation before its software can be uninstalled, even though Claria had requested no extra confirmation to get onto users’ PCs.

So users can receive Claria by clicking once on a single ad, but removing Claria requires many more steps. This design seems like a clear violation of the “get out … as easy as … got in” rule Freeman attributes to the FTC. Why not place a one-click uninstall button on every Claria ad, so users can remove Claria as easily as they got it?

Telling Users What Claria Really Does

Freeman further notes the importance of disclosing what a program will do before that program is installed on a user’s PC. Freeman explains:

“The law is that material terms have to be disclosed prior to a consumer’s taking action. … Material terms, as defined by the FTC, are those that are likely to affect a consumer’s conduct with respect to a product or service. … In my view, the key terms that consumers should know–those that consumers would be unhappy if they didn’t know–are that we will track your online behavior and serve you advertising. Those key material terms are disclosed in every download process … in a way that is unavoidable prior to the consumer taking action “

I applaud Freeman’s emphasis on timely disclosures. But here too, Claria’s actual practices fall short.

Claria’s prominent disclosures say nothing of transmission or storage of users’ activities. The first page of Claria’s license (as shown by the Kazaa installer) mentions that advertisements are “selected in part based on how you surf the Web.” From this disclosure, users could reasonably conclude that Claria’s software chooses ads by mere monitoring of users’ activities — observing a user at one travel site, then showing a pop-up ad for another.

But as it turns out, Claria does more. Claria transmits users’ activities to its servers, then stores this information in a huge database. A November 2003 eWeek article reported that Claria’s then-12.1 terabyte database was already the seventh largest in the world — bigger than Federal Express, and rivalling Amazon and Kmart. A recent Oracle press release touted Claria as “one of the the world’s largest Oracle Data Warehouse … deployments.”

Claria’s license fails to prominently disclose transmission and storage of users’ activities. That advertisements are “selected in part based on how you surf the web” says nothing of any central Claria database recording who goes where. Only at page 11 of 63, 950 words into its 5,900+ word license, does Claria finally explain its true design — transmitting user activities to Claria servers — by admitting that “we do know … some of the web pages viewed” (emphasis added).

Screen-shot showing the disclosure shown by Zango when bundled with Secret Chamber.  Zango prominently discloses that it Screen-shot showing the disclosure shown by Zango when bundled with Secret Chamber. Zango prominently discloses that it “collects” information about users’ web site visits.

Here again, Claria’s disclosure is inferior to its competitors. 180solutions software is sometimes installed without any notice or consent at all — for example, through security holes. (video) But when 180 requests permission to install, it offers a more forthright description of its intended activities. For example, when installed with the Secret Chamber video game, 180 prominently discloses: “Zango collects … information about the websites a user visits.” (screenshot)

A user who receives 180’s disclosure learns that 180 will not only monitor online behavior, but also collect this data. That’s a fact 180 seems to regard as relevant — worth bringing to users’ attention, beyond fine print midway through a long license agreement. It’s a fact of likely interest to many users — who may not want their data stored, perhaps permanently, on Claria’s servers. So this transmission and collection is, in Freeman’s words, a fact consumers “would be unhappy if they didn’t know.” By Freeman’s own standard, then, this fact ought to be more prominently presented in Claria’s disclosure — on page one, not page eleven.

Grokster and Claria Take Licenses to New Lows, and Congress Lets Them Do It

I’ve recently been looking at the unwanted software installed by Grokster (a peer-to-peer filesharing program). Eric Howes has documented Grokster’s exceptionally large bundle, which includes Claria, 411 Ferret/ActiveSearch, AdRoar, Altnet/BDE, BroadcastPC, Cydoor, Flashtrack, MyWay/Mybar, SearchLocate/SideBar, Topsearch, TVMedia, VX2/ABetterInternet, Browser Hijack, two different TopMoxie programs (branded by WebRebates), and several other programs not yet identified.

These programs, in combination, place a major burden on users’ computers: Loading and running so many extra tasks leaves less memory, less bandwidth, and less CPU time for whatever users actually want to do. My lab PCs are fast and well-maintained, but installing Grokster and its bundle makes them sluggish and hard to use. Worse, it’s hard to undo the damage Grokster and its partners cause: Eric also tracks, in unprecedented detail, how even the newest spyware removal applications can’t get rid of all the programs Grokster installs. It’s a mess, Eric’s site explains, and he’s surely right.

But as it turns out, the situation is even worse than Eric realized. As Eric explains, Grokster installs lots of junk if a user presses Accept. However, Grokster also installs software even if the user presses Cancel! That’s right: If a user has second thoughts after seeing the long license agreements, and if the user decides to press Cancel, Grokster’s installer nonetheless installs SearchLocate/SideBar and TVMedia. See the screen-shots below, taken from my video (WMV, 1MB) of the install process. (For best viewing, watch video in full-screen mode.)

C:\Program Files directory before Grokster installation begins.  Click to enlarge.   C:\Program Files folder before Grokster installation begins.
Sorted by date/time, ascending order. Latest entries:

Pressing Cancel in the Grokster installer.  Click to enlarge.   The Grokster installer. I press the Cancel button.

     

C:\Program Files directory after Grokster installation is cancelled.  Click to enlarge.   C:\Program Files folder after Grokster installation terminates.
Sorted by date/time, ascending order. Latest entries:

Notice new entries at the bottom of hte list: SearchLocate and TV Media.  These directories and their contents were created, after I pressed the Cancel button in the Grokster installer.

Equally outrageous are the extraordinarily lengthy license agreements Grokster and its partners ask users to accept. First comes a Claria license agreement that takes, by my count, 120 distinct screens (119 presses of the page-down key) to view in full. As shown in the Grokster installer, Claria’s license has grown to an incredible 6,645 words. So Claria’s current license is 43% longer than the US constitution — before we count the nine separate web pages Claria’s license references, some of them quite lengthy, but which Claria nonetheless claims are “incorporated by reference.” Furthermore, Claria’s license is growing rapidly: When I prepared screen-shots of Claria’s license, as shown by Kazaa in June 2004, the license was 5,541 words long. If Claria’s license continues to grow by 20% every four months, it will be 11,500 words long in October 2005, and 34,300 words long in October 2007. Maybe Claria’s lawyers get paid by the word.

And it gets worse: Grokster installs other programs, with their own licenses, and Grokster shows these many licenses en masse in a subsequent screen. These licenses appear in a text box that, for whatever reason, doesn’t let me to copy its text to the clipboard. So I can’t know the precise word count of the licenses in this second box. But I do know it took 278 page-downs to view the entire license.

That makes a total of 398 page-downs for any user who wants to know what lies in store upon installing Grokster. 398!


This past week, the US House of Representatives passed two bills that purport to address the spyware problem. Would they do anything about Grokster’s outrageous activities?

Goodlatte‘s H.R.4661 prohibits unauthorized software installation — but only under specific, narrow circumstances. I can’t immediately say that SearchLocate/SideBar and TVMedia are used in furtherance of a Federal criminal offense, so Sec.2.(a) is inapplicable. And I can’t say that the programs intentionally obtain or transmit personal information with the intent to defraud, injure, or cause damage. Surely the programs’ authors would deny any such intent. So Sec.2.(b) is inapt too. Looks like Goodlatte’s bill wouldn’t help.

Bono‘s H.R. 2929 does prohibit the unauthorized software installation. Sec.2.(a)(4)(A) specifically bans installing software when a user declines installation. Score one for the good guys.

But suppose Grokster ended the truly outrageous installation of software even when users press Cancel, instead installing its bundle only when users press Accept. (Grokster will more than likely make this change after reading my article.) Then Grokster would be, I fear, substantially compliant with H.R.2929.

For 2929’s purposes, it doesn’t matter that Grokster installs so much software that it essentially ruins even an above-average PC. The bill’s Sec.3. approves of the installation of fifteen programs, or a hundred and fifteen, so long as the user is first shown a single notice that warns “This program will collect information about Web pages you access and will use that information to display advertising on your computer. Do you accept?’ Or, thanks to a recent revision to the bill, the installer can show some other text, so long as it is “substantially similar,” but even if it is more complicated, more confusing, or harder to understand.

I worry that Grokster can and will include the brief disclosure 2929 specifies, or an alternative text that makes the installation sound even more unobjectionable. Then all too many users will be tricked into accepting Grokster’s massive software bundle, and they will find their PCs grind to a halt under the load Grokster and its partners impose. Users will be running Bono-certified software, 100% compliant with relevant law (should Bono’s bill in fact become law). But their computers will be nearly useless nonetheless.

If I were revising Bono’s bill, I’d seek to tighten its requirements. I certainly wouldn’t permit watered-down “substantially similar” disclosures. I’d also prohibit the installation of a bundle of software, where the user requested only a single program, if that bundle has significant adverse effects on the speed and reliability of a typical computer, and if that bundle has no substantial relationship to the software the user initially requested. For bundled programs that show advertising, I’d require that the installation provide a sample of each kind of advertisement to be shown, and I’d require that the installation disclose the typical frequency of ad displays. In short, there are lots of creative ways to tighten the language, so that programs can’t satisfy the bill’s requirements while continuing to trick users into unwanted installations.

Instead, 2929 takes a narrower approach — admittedly stopping a class of outrageous behaviors, but letting all too many continue. Given the bill’s preemption of tougher state laws, this is legislation that, far from stopping spyware, in many respects makes the spyware problem worse.

Can we count on the Senate to close the loopholes in the bills as passed? News coverage suggests that these bills are a done deal already. And Congress has enacted weak legislation before (e.g. CAN-SPAM). So I’m not holding my breath.