180 Talks a Big Talk, but Doesn’t Deliver updated February 4, 2005

The anti-spyware community has been abuzz all weekend with the news of spyware company 180solutions joining the Consortium of Anti-Spyware Technology (COAST). From the 180solutions press release:

“180solutions, a provider of search marketing solutions, today announced it has become a developer member of … COAST. … By working with COAST and complying with its strict Code of Ethics, standards and guidelines, 180solutions aligns itself with the organization’s governing companies, … PestPatrol, … Webroot. … “180solutions has passed a lengthy and rigorous review process demonstrating their commitment to develop and distribute spyware-free applications,” said Trey Barnes, executive director of COAST.”

Some specific worries:

Substantive conflict of commitment

COAST members PestPatrol and Webroot currently detect and remove 180 software. So these companies are (rightly!) telling their users that 180solutions software should be removed from users’ computers.

At the same time, according to 180’s press release, 180solutions is “releasing versions of its applications that have been reviewed and evaluated by COAST.” This press release, COAST’s “review” of 180 software, and COAST’s acceptance of 180 into its consortium can only be taken to constitute a COAST endorsement of 180. That’s a clear conflict with COAST members simultaneously recommending that users remove 180 software.

Then there’s the conflict of interest that inevitably arises whenever an anti-spyware company declares an alleged spyware provider to be legitimate. Users buying a vendor’s anti-spyware software think they’re buying that vendor’s best efforts to identify and remove software users don’t want. When the vendor instead accepts funds from a software provider, one making the kind of software that the vendor is supposed to be removing, users can’t help but wonder whose interests the vendor has in mind. To my mind, the better strategy is for anti-spyware vendors to refuse partnerships with any company making software that might colorably be claimed to be spyware. (See Xblock’s statement of policy.)

I don’t want to overstate the problem. So far, PestPatrol and Webroot still detect and remove 180 software. 180 isn’t listed on COAST’s Members page. And COAST members don’t directly receive the money 180 pays COAST.

But the latent problems remains: For a fee, COAST is certifying controversial providers of allegedly-unwanted software, dramatically complicating the role and duties of COAST and its members. COAST staff are providing favorable quotes in 180 press releases. Who can users trust?

180solutions installation practices are outrageous and unethical

180’s endorsement by COAST is particularly puzzling and particularly worrisome due to 180’s many bad business practices. Indeed, in my testing, 180’s installation practices remain among the worst in the industry. The details:

I have personally observed (and preserved in video recordings) more than two dozen instances of 180 software installed through security holes. (Example video.) Just yesterday, I browsed the Innovations of Wrestling site (iowrestling.com, proceed at your own risk), where viewing the site’s privacy policy invoked a security exploit installing more than a dozen unwanted programs, 180solutions software included. (Note that iowrestling’s installations are at least partially random, so it’s hard to replicate this result. But I kept a video and packet log of my findings.)

Even when 180 installers do request consent to install, the disclosure is often quite misleading. For example, I previously documented Kiwi Alpha installing 180, first mentioning 180 at page 16 of a 54-page license agreement. With 180’s installation warning buried in such a long text, ordinary users are unlikely to learn that Kiwi gives them 180. Certainly users don’t grant knowing consent to the installation.

180’s web site claims “no hiding,” but 180 uses a variety of tricks to make its software harder to find and remove. 180 sometimes uses randomized filenames which make its files unusually difficult to locate. 180 also installs itself into multiple directories — sometimes c:Program Files180solutions (or similar), but sometimes into the root of c:Program Files and sometimes directly into a user’s Windows directory. If uses do manage to find and delete some 180 files, another 180 program often pops up to request reinstallation. If these tricks don’t constitute hiding, I don’t know what does.

180’s controversial installation practices are not mere anomalies. I’ve observed these, and others like them, for months on end. Even 180solutions’ director of marketing sees the problem. See Seattle Post-Intelligencer article, reporting his admission that “n-Case could get bundled with other free software programs without the company’s knowledge [which] could lead to the n-Case software fastening to individual’s computers without their knowledge.”

How did 180 get into this mess? It seems 180 hasn’t been careful in choosing who they partner with. In fact, they recruit distributors (as well as advertisers) by unsolicited commercial email. See 20+ examples.

Interestingly, in its recent press release, 180 does not claim to have stopped these controversial practices. If 180 did make such a claim, I’d be able to disprove it easily — there are so many sources of 180 software installed without notice and consent. Instead, 180 claims only that they are working on a “transition” to improved business practices.

But this isn’t the first time 180 has promised to clean up its act. In March 2004, 180’s CEO claimed 180’s “Zango” product — then the new replacement for the older n-CASE — would give users more information before installation. In an April interview, he attributed to the old n-CASE product “certain users … who are not sure where or how they got our software,” but said “the Zango product … is a means to improve that.” On at least these two occasions, 180 has pledged to improve its practices. Nearly a year later, 180 software often still gets installed without notice or consent. So we’re still waiting for the promised improvements. Meanwhile, 180 continues to benefit profit from its millions of ill-gotten installations.

180solutions advertising practices are outrageous and unethical

Beyond controversial installation methods, 180 also deserves criticism for its intrusive and allegedly-anticompetitive advertising practices.

180 covering Delta.com with Hawaiian Airlines web site180 covering Delta.com with Hawaiian Airlines web site

When 180 covers a web site with one of its competitors, 180 doesn’t just show a small popup ad (like, say, Claria — not that Claria’s practices deserve praise). Instead, 180 opens a new web browser showing the competitor’s site, generally covering substantially all of the targeted web site. A user who wants to stick with the site he had previously requested must affirmatively close the new window — taking an extra step due to 180’s intervention. What would we think of a telephone company that connects a user to Gateway when the user dials 1-800-Dell-4-Me, unless the user then presses some extra key to return to what he had requested initially? The real-world analogy makes it almost too easy to assess 180’s legitimacy: No telephone company could get away with such a scam, yet 180’s advertising practices have gone largely unchallenged.

Even more problematic are 180 ads targeted at competitors’ check-out pages. Sometimes 180 lets a user browse a merchant’s web site uninterrupted, but when the user reaches the page requesting order confirmation, 180 then covers the merchant’s site with a competitor — interrupting the user’s purchase. Again, the real-world analogy is straightforward. Suppose one retailer sent its sales employees into a competitor’s store, to invite users to take their business elsewhere as they waited in line to reach the checkout counter. The intruding employees would be arrested as trespassers.

Then there are the thousands of 180 ads that include affiliate codes. Some of 180’s ads cover a web site with a competitor reached through an affiliate link. Via these ads, companies find themselves promoted by 180, and find themselves directly or indirectly paying commissions to 180 — all despite never requesting that 180 advertise or promote them.

Even worse are the 180 ads that target a merchant with its own affiliate links. Here, merchants end up paying affiliate commissions where they’re not otherwise due. For example, when users reach merchants’ sites by clicking through non-affiliate links or by typing merchants’ domain names, 180 nonetheless intercedes by opening affiliate links to merchants’ sites. Whether shown in double windows, hidden windows, or on-screen decoys, 180’s affiliate links make merchants’ commission-tracking systems think resulting purchases resulted from 180’s promotional efforts. Unless merchants figure out that they’re being cheated — being asked to pay commissions not fairly earned — 180 and its advertisers receive commission payments for users’ purchases. (Details; example.)

There’s plenty more to criticize about 180. To this day, installations on zango.com let users install 180 software without so much as seeing 180’s license agreement. Even 180’s current uninstall procedures give far more information than 180 provides prior to installation. And Andrew Clover reported 180 code that deletes competitors’ programs from users’ disks.

COAST’s credibility on the line

180’s claims of planned improvement are essentially unverifiable. Since 180 admits to a mix of permissible and impermissible installations, its claims of improvement cannot be falsified by critiquing current behavior. Instead, whenever I or others show 180 software installed without proper notice and consent, 180 can say this is just a remnant of prior practices not yet cleaned up in “transition.” By the plain text of 180’s press release, we’ll have to wait at least 90 days to prove that 180 isn’t living up to its promises to COAST and to users.

Why would COAST sign onto this bargain? MediaPost reports 180 paying COST a membership fee as large as $10,000 per year, so that gives one clear explanation. Also, notwithstanding participation by PestPatrol and Webroot, COAST’s past is hardly uncontroversial. In 2003, Lavasoft (makers of Ad-Aware) decided to leave COAST, complaining that COAST’s focus on “revenue generation … reflect[s] badly on the entire anti-trackware industry.” Similarly, Spybot refused to join COAST due to participation by companies that were, in Spybot’s view, unethical.

COAST’s credibility is on the line. I don’t see endorsement of software providers as an appropriate part of COAST’s mission. But even if such work were appropriate, 180 deserves no such praise — its history of outrageous practices and its continued use of such practices mean it should be criticized, not granted an award or endorsement.

Update (February 4): Reporting “concern” at COAST’s certification program, Webroot resigned from COAST.

Update (February 7): Computer Associates (makers of PestPatrol) also resigned from COAST. However, a CA spokesperson defended COAST’s endorsement procedure, calling such endorsements “valuable.”

Disclosure: I serve as a consultant to certain merchants concerned about fraudulent activities by 180solutions and its advertisers. I have advised certain attorneys and merchants concerned about 180solutions activities and practices.

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.

Media Files that Spread Spyware updated January 3, 2005

Users have a lot to worry about when downloading and playing media files. Are the files legal? Can their computers play the required file formats? Now there’s yet another problem to add to the list: Will a media file try to install spyware?

When Windows Media Player encounters a file with certain “rights management” features enabled, it opens the web page specified by the file’s creator. This page is intended to help a content providers promote its products — perhaps other music by the same artist or label. However, the specified web page can show deceptive messages, including pop-ups that try to install software on users’ PCs. User with all the latest updates (Windows XP Service Pack 2 plus Windows Media Player 10) won’t get these popups. But with older software, confusing and misleading messages can trick users into installing software they don’t want and don’t need — potentially so many programs that otherwise-satisfactory computers become slow and unreliable.

Screen-shot of the initial on-screen display. If users press Yes, scores of unwanted programs are installed onto their PCs. Click to enlarge.Screen-shot of the initial on-screen display. If users press Yes, scores of unwanted programs are installed onto their PCs.

I recently tested a Windows Media video file, reportedly circulating through P2P networks, that displays a misleading pop-up which in turn attempts to install unwanted software onto users’ computers. I consider the installation misleading for at least three reasons.

  1. The pop-up fails to name the software to be installed or the company providing the software, and it fails to give even a general description of the function of the software.
  2. The pop-up claims “You must agree to our terms and conditions” — falsely suggesting that accepting the installation is necessary to view the requested Windows Media video. (It’s not.)
  3. Even when a user specifically requests more information about the program to be installed, the pop-up does not provide the requested information — not even in euphemisms or in provisions hidden mid-way through a long license. Clicking the pop-up’s hyperlink opens SpiderSearch’s Terms and Conditions — a page that mentions “receiving ads of adult nature” and that disclaims warranty over any third-party software “accessed in conjunction with or through” SpiderSearch, but that does not disclose installation of any third-party software.

Screen-shot of my Program Files folder, showing some of the programs installed on my test computer.Screen-shot of my Program Files folder, showing some of the programs installed on my test computer.

On a fresh test computer, I pressed Yes once to allow the installation. My computer quickly became contaminated with the most spyware programs I have ever received in a single sitting, including at least the following 31 programs: 180solutions, Addictive Technologies, AdMilli, BargainBuddy, begin2search, BookedSpace, BullsEye, CoolWebSearch, DealHelper, DyFuca, EliteBar, Elitum, Ezula, Favoriteman, HotSearchBar, I-Lookup, Instafin, Internet Optimizer, ISTbar, Megasearch, PowerScan, ShopAtHome Select, SearchRelevancy, SideFind, TargetSavers, TrafficHog, TV Media, WebRebates, WindUpdates, Winpup32, and VX2 (Direct Revenue). (Most product names are as detected by Lavasoft Ad-Aware.) All told, the infection added 58 folders, 786 files, and an incredible 11,915 registry entries to my test computer. Not one of these programs had showed me any license agreement, nor had I consented to their installation on my computer.

I retained video, packet log, registry, and file system logs of what occurred. As in my prior video of spyware installing through security holes, my records make it possible to track down who’s behind the installations — just follow the money trail, as captured by the “partner IDs” within the various software installation procedures. When one program installs another, the second generally pays the first a commission, using a partner ID number to track who to pay. These numbers make it possible to figure out who’s profiting from the unwanted installations and, ultimately, where the money is going.

Figuring Out Who’s Responsible

Most directly responsible for this mess is ProtectedMedia — the company that caused my computer to display the initial misleading pop-up shown above. ProtectedMedia invited the installation of some unwanted programs, which in turn installed others, but ProtectedMedia could readily stop these behaviors, e.g. by disabling its misleading pop-up installation attempts.

Screen-shot of the icons added to my test computer's desktop. Note a new link to Dell -- an affiliate link such that Dell pays commissions when users make purchases after clicking through this link.Screen-shot of the icons added to my test computer’s desktop. Note a new link to Dell — an affiliate link such that Dell pays commissions when users make purchases after clicking through this link.

But who pays ProtectedMedia? As I started to follow the money trail, I was surprised to see that some of the unrequested programs receive funds from respected online merchants. Several of the spyware installations added new toolbars to my computer’s browser and new icons to my desktop. If users click through these links, then make purchases from the specified merchants, the merchants pay commission to the affiliates who placed these toolbars and icons on users’ PCs. Even large, otherwise-reputable companies pay commissions through these systems, thereby funding those who install unwanted software on users’ computers. In my testing, I received affiliate links to Amazon, Dell, Hotwire, Match.com, Travelocity, and others. Many of these links pass through affiliate tracking networks LinkShare and Commission Junction.

Of course, these merchants may not have intended to support spyware developers. For example, merchants may have approved the affiliates without taking time to investigate the affiliates’ practices, or the affiliates’ actions may be unauthorized by the merchants. (That’s what Dell said when I previously found Dell ads running on Claria.) In future work, I’ll look in greater detail at which merchants pay affiliate commissions to which spyware programs, and I’ll also further document which merchants purchase advertising from companies whose software sneaks onto users’ computers.

Other companies partially responsible for these practices are the providers of the unwanted software — companies that pay commissions to distributors foisting their software onto users’ computers. In general there’s no reason to expect honorable behavior by providers of unwanted software. But some of the programs I received come from big companies with major investment backing: 180solutions received $40 million from Spectrum Equity Investors; Direct Revenue received $20 million from Insight Venture Partners; and eXact Advertising (makers of BargainBuddy and BullsEye) received $15 million from Technology Investment Capital Corp. With so much cash on hand, these companies are far from judgment-proof. Why are they paying distributors to install their software on users’ computers without notice and consent?

The problematic installations ultimately result from the “feature” of Windows Media Player that lets media files open web pages. But most users will only receive the contaminated files if they download files from P2P filesharing networks. Of course, rogue media files are but one way that P2P networks spread spyware. For example, users requesting Kazaa receive a large bundle of software (including Claria’s GAIN), after poor disclosures that bury key terms within lengthy licenses, without even section headers to help readers find what’s where. Users requesting Grokster receive unwanted software even if they press Cancel to decline Grokster’s installation (details).

Ed Bott offers an interesting, if slightly different, interpretation of these installations. Ed rightly notes that users with all the latest software — not just Windows XP Service Pack 2, but also Windows Media Player 10 — won’t get the tricky pop-ups described above. Ed also points out that Windows Media Player displays of ActiveX installation prompt pop-ups are similar to deceptive methods users have seen before, i.e. when web sites try to trick users into installing software. True. But I think Ed gives too little weight to the especially deceptive circumstances of a software installation prompt shown when users try to watch a video. For one, legitimate media players actually do use these prompts to install necessary updates (i.e. the latest version of Macromedia Flash), and Windows Media Player often shows similar prompts when it needs new codecs or other upgrades. In addition, the unusually misleading (purported) product name and company name make it particularly easy to be led astray here. Users deserve better.

Video: eBates Installed through Security Holes

I’ve long been a fan of online shopping site Ebates. Sign up for their service, visit their web site, click through their special links to merchants (including merchants as distinguished as Dell, Expedia, IBM, and L.L. Bean), and earn a small cash back, generally a few percent of your purchase.

But another side of Ebates’ business has become controversial: Ebates uses a software download called “Moe Money Maker” (MMM) to automatically claim merchants’ affiliate commissions, then pay users rebates — even if users don’t visit Ebates’ web site, and even if users don’t click through Ebates’ special links.

Why the controversy? I see at least two worries:

1) Aggressive software installations.

  • Partial screen-shot taken from video of Ebates installation through a security hole, without any notice or consent.Partial screen-shot taken from video of Ebates installation through a security hole, without any notice or consent.

    Users visiting ebates.com can receive MMM software merely by filling out a form and failing to uncheck the “I would like to download MMM” checkbox (checked by default).

  • Users downloading certain third-party programs (screen-savers and the like) receive MMM as part of the bundle — disclosed, in my testing, but often with a long license in a small box, such that many users don’t fully understand what they’re getting.
  • Most troublingly, there have been persistent allegations of Ebates installed without any notice or consent whatsoever. I had always discounted these allegations until I saw the proof for myself earlier last month. See video of Ebates MMM installed through security holes.

2) Claiming affiliate commissions that would otherwise accrue to other affiliates. Many web sites receive affiliate commissions when users make purchases through special links to merchants’ web sites. (See e.g. Lawrence Lessig‘s “Get It Here” page.) Network rules (Commission Junction , Linkshare) prohibit Ebates from interceding in these transactions; instead, the independent web sites are to receive the commissions for purchases through their links. But Ebates’ software sometimes claims commissions anyway — specifically contrary to applicable rules. These behaviors have been alleged and reported for years, and recently documented in a series of videos (videos of particular interest. Apple, Cooking.com, Diamonds International, JJill, Lillian Vernon, Sharper Image, Sony). If Ebates’ prohibited interventions were only temporary, they would be easy to sweep away as mere malfunctions. But when problems continue for years, to Ebates’ direct financial benefit and to others’ detriment, the behavior becomes harder to disregard.

Meanwhile, Ebates has inspired copy-cat programs with similar business models but even more controversial execution. I’ve recently made literally scores of videos of eXactAdvertising‘s CashBack by BargainBuddy installed through security holes, and also of TopRebates/WebRebates installed through security holes — always without any notice or consent whatsoever. These programs remain participants in the Commission Junction and LinkShare networks — presumably receiving commissions from these networks and their many merchants (CashBack merchants, TopRebates merchants). I’m surprised that so many merchants continue to do business with these software providers — including so many big merchants, who in other contexts would never consider partnering with software installed without notice and consent.

I think the core problem here is skewed incentives. Affiliate networks (CJ and LinkShare) have no financial incentive to limit Ebates’ operation. Instead, the more commissions claimed by Ebates, the more money flows through the networks — letting the networks charge fees of their own. In principle we might expect merchants to refuse to pay commissions not fairly earned — but merchants’ affiliate managers sometimes have secondary motives too. In particular, affiliate managers tend to get bonuses when their affiliate programs grow, which surely makes them particularly hesitant to turn away the large transaction volume brought by MMM’s automatic commission system. That’s not to say some merchants don’t knowingly and intentionally participate in Ebates — some merchants understand that they’ll be paying Ebates a commission on users’ purchases even when users type in merchants’ web addresses directly, and some merchants don’t mind paying these fees. But on the whole I worry that Ebates isn’t doing much good for many merchants, even as its software comes to be installed on more and users’ PCs, with or without their consent.

The Ebates Money trail: users -> merchants -> affiliate networks -> Ebates -> Ebates distributors”>The Ebates Money trail: users -> merchants -> affiliate networks -> Ebates -> Ebates distributors</p>
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<p><a name=For users who share my continued interest in following the money trail, the diagram at right summarizes Ebates’ complicated business model. Users make purchases from merchants, causing merchants to pay affiliate commissions (via affiliate networks such as LinkShare and Commission Junction) to Ebates. Ebates in turn pays commissions to those who cause its software to be installed, including those installers who install Ebates’ software through security holes, without notice or consent.

Ebates Terms & Conditions Allow Removing Other Programs

Finally, note that Ebates has joined the ranks of software providers who, in their EULAs, claim the right to remove other software programs. Ebates’ MMM Terms & Conditions demand:

“Ebates may disable or uninstall any other product or software tool that might interfere with the operability of the Moe Money Maker Software or otherwise preempt or render inoperative the Moe Money Maker Software … In installing the Moe Money Maker Software, you authorize Ebates to disable, uninstall, or delete any application or software that might, in Ebates’ opinion nullify its function.”

Ebates is right to worry that a user can only successfully run a single automatic commission-claiming program. But this license language allows Ebates to delete far more than competing commission programs. For example, if Ad-Aware removes MMM as spyware, thereby “interfering with the operability” of MMM, then the license purports to give Ebates the right to remove Ad-Aware.

Update (December 15): Ebates staff wrote to me to report that they have narrowed the clause quoted above. Ebates’ current Terms allow disabling only “shoping or discount software,” not general-purpose software removal tools like Ad-Aware. Ebates staff further note that they have never exercised the rights granted under the prior Terms text. However, Archive.org reports that Ebates’ Terms included the broad “any application or software” language as long ago as August 2003.

Thanks to Ian Lee, Internet Marketing Strategist & Affiliate Manager of ADS-Links.com, for recommendations on video production methods.

Direct Revenue Deletes Competitors from Users’ Disks updated February 8, 2005

For companies making programs that show users extra pop-up ads, one persistent problem is that users are bound to take action once their computers get too clogged with unwanted software. Find a removal tool, hire a technician, reinstall Windows, buy a new computer, or just stop using the Internet — whatever users do, the pop-up companies won’t make any more money if users don’t keep surfing, and don’t keep clicking the ads. The problem is all the worse because so many unwanted programs install others (usually in exchange for a per-install commission). So if a user has one program showing extra pop-ups, the user might soon have five more.

What’s an “adware” company to do? Direct Revenue has one idea: Delete its competitors’ programs from users’ hard disks. With the other programs gone, users’ computers will run more or less as usual — showing some extra ads from Direct Revenue, but perhaps not attracting so much attention that users take steps to remove all unwanted software.

Direct Revenue’s End User License Agreement provides, in relevant part:

“[Y]ou further understand and agree, by installing the Software, that BetterInternet and/or the Software may, without any further prior notice to you, remove, disable or render inoperative other adware programs resident on your computer …”

In my recent testing, I’ve observed the removals Direct Revenue’s EULA seems to anticipate. And I’m not the only one: I’ve just received a copy of a lawsuit filed by Avenue Media, complaining that Direct Revenue is “systematically deleting Avenue Media’s Internet Optimizer without users’ knowledge or consent.” Indeed, in my November 17 testing, I found that software installed on my PC by ABetterInternet (a product name used by Direct Revenue) received the following instructions from its targeting server, calling for the removal of Avenue Media’s Internet Optimizer:

request for instructions from server

POST /bi/servlet/ThinstallPre HTTP/1.1

Host: thinstall.abetterinternet.com

begin response from server

excerpted to show only removal
code targeting Internet Optimizer

HTTP/1.1 200 OK
Date: Wed, 17 Nov 2004 15:31:00 GMT
Server: Apache/2.0.46 (Red Hat)
Content-Length: 3881
Connection: close
Content-Type: text/xml

list of running processes to stop (“kill”)

<install><action type=”KillProc”>
<proc exe=”optimize.exe” />
</action>

start of an “.INF” file
(in usual Windows .INF format)


<action type=”installINF”>
<inf section=”DefaultInstall”>

[DefaultInstall] …
DelReg=RegistryEntries
DelFiles=ProgFiles,systemFiles

registry entries to be removed


[RegistryEntries] …
HKLM,SOFTWARE\Microsoft\Windows\CurrentVersion\Run,”Internet Optimizer”

files on disk to be removed

[ProgFiles]
Internet Optimizeractalert.exe,,,1
Internet Optimizeroptimize.exe,,,1
Internet Optimizerupdateactalert.exe,,,1

In my testing, Direct Revenue’s software acts on these instructions — stopping the optimize.exe task (Internet Optimizer’s main program), then deleting the associated registry entries and program files. So I think Avenue Media is correct as to the basic facts of what’s happening. Conveniently, in tests beginning on November 17, I even made videos showing Internet Optimizer’s software being deleted — files eerily disappearing as Direct Revenue’s software deleted Internet Optimizer along with other targeted programs.

How do I happen to have records, logs, and even videos of events occurring several weeks ago? As it turns out, both Internet Optimizer and Direct Revenue were unwanted additions to my test PC: Both were installed through security holes, much like the installations I documented in my Who Profits from Security Holes? write-up and video last month. I’ve been making more such videos — roughly one a day for the past few weeks. So I’ve repeatedly seen Direct Revenue removing Internet Optimizer.

In my security-hole videos, I never saw nor accepted any Direct Revenue license. So, at least as to me, Direct Revenue cannot convincingly cite its EULA to defend its removal of Internet Optimizer. (See also my recent analysis of Gator’s EULA.) However, my test PC became noticeably faster after Direct Revenue removed other unwanted programs that had been installed through security holes. So, for some consumers, Direct Revenue’s removal of competitors’ programs may offer a useful if surprising benefit. (Compare: Radlight removing Ad-Aware, without any apparent benefit to consumers.)

Case documents: Avenue Media v. Direct Revenue

As promised: Internet Optimizer’s case documents, alleging claims under the Computer Fraud and Abuse Act as well as for tortious interference with economic relations:

Complaint: Avenue Media, N.V. v. Direct Revenue LLC, BetterInternet LLC (PDF)
Memorandum in Support of Temporary Restraining Order (PDF)
Declaration of Moses Leslie (PDF)
Response by Direct Revenue (PDF) and supporting declaration of Joshua Abram (PDF)

Avenue may be suffering from wrongful behavior by Direct Revenue, but note that Avenue has problems of its own. In my tests, Avenue’s software (like Direct Revenue’s) was installed without any notice or consent whatsoever. (Again, I have video proof.) However installed, Internet Optimizer’s primary function is to show extra advertising, primarily by replacing web browser error messages with its own ads — not a feature most users request. In addition, Internet Optimizer’s EULA admits to tracking web sites visited and keywords searched. Finally, Doxdesk reports that Internet Optimizer has (or recently had) security holes that risk unauthorized installation of other software.

Update (February 8, 2005): Avenue Media and Direct Revenue have reportedly reached a settlement. No money will change hands, but the companies have agreed to no longer disable each other’s software.

More on Direct Revenue

Removing competitors’ programs is not Direct Revenue’s only controversial activity. Direct Revenue’s core business is showing extra pop-up ads. Which ads? Covering which sites? Early next year, I expect to release a report detailing some of the advertisers supporting Direct Revenue, and showing some ads Direct Revenue targets at certain web sites. Advance access available by request.

I also plan to present the sensitive information sent by Direct Revenue to its servers. In recent testing, I’ve seen Direct Revenue collect each user’s ethernet address or “MAC address” — a unique identifier permanently associated with each network card (i.e. with each computer). Direct Revenue also transmits users’ Windows product IDs — of particular interest due to their use in Microsoft’s product activation system.

I have recently observed that Direct Revenue tracks the .EXE names of all running tasks, specifically checking for installations of certain competing programs (including Gator and 180solutions) and for certain spyware-removal programs (including Ad-Aware and PestPatrol). Direct Revenue checks for these programs in the same way it checks for Internet Optimizer — suggesting that Direct Revenue might also target some or all of these programs for automatic deletion, just as it automatically deleted Internet Optimizer in the log shown above. That hypothesis is more than speculative: My November videos and packet logs show Direct Revenue deleting not just Internet Optimizer but also ActAlert/DyFuCa, EliteToolbar, and others.

Finally, note that Direct Revenue recently received $20 million of funding from Insight Venture Capital Partners, as well as $6.7 million from Technology Investment Capital Corp (TICC).

Gator’s EULA Gone Bad

Gator has recently taken steps to portray itself as a model citizen among what it calls “adware” companies. Gator proudly announced support for California’s new anti-spyware law. (But see my criticism of the law as ineffective.) Earlier this year, Gator hired a former FTC staff attorney to serve as Gator’s chief privacy officer, participated (PDF) in the FTC‘s spyware workshop, and even joined CDT‘s “consumer software working group” committee. (See recommendations document (PDF) signators list, final page.)

Has Gator turned over a new leaf? For insight, I turned to Gator’s license agreements, to see how Gator currently presents itself to ordinary users.

It’s not often that I sit down to read Gator’s license agreements. At 5,936 words, the license stretches to 63 on-screen pages as presented by the current Kazaa installer (bundling Gator). (See screen-shots of the Gator license as presented in June 2004, then requiring 56 on-screen pages.) Here are some notable sections of the license:

Prohibition against automated removal tools

Nearly three thousand words into its license, Gator proclaims:

You agree that you will not use, or encourage others to use, any unauthorized means for the removal of the GAIN AdServer, or any GAIN-Supported Software from a computer.”

Gator proceeds to list the “authorized means” for removing Gator — prominently failing to authorize use of popular tools, such as Ad-Aware, Spybot, and Web Sweeper, which millions of users count on to remove unwanted software from their PCs.

In recent press releases, Gator has claimed to favor “consumer … choice” and has argued that what occurs on users’ computers is “users’ choice.” So long as consumers are (supposedly) choosing to run Gator software, Gator vigorously defends user choice. But when a consumer chooses to use third-party software to remove Gator, Gator instead specifically prohibits that choice.

If Gator were easy to uninstall, users might not need to resort to third-party removal programs. But Gator makes its software hard to remove. Browse to Add/Remove Programs on a computer with Gator installed, and there’s often no entry for Gator. Instead, users are required to identify, find, and remove all programs that bundle Gator, and only then is Gator’s software designed to uninstall. This unusual removal procedure — unique among all programs I’ve ever encountered — makes Gator difficult for users to remove.

Removing Gator becomes even harder, using Gator’s official removal procedure, as a result of Gator’s cross-promotion of its various products. After a user receives Gator’s GAIN advertising-display software, Gator often shows pop-ups that encourage installation of other Gator programs, such as clock synchronizers and weather monitors. As a result, many users run multiple “Gator-supported” applications, each of which must be separately identified and removed in order to use Gator’s official removal procedure. Facing Gator’s lengthy and complicated removal procedure, it’s no wonder many users look to third-party removal programs for help.

Prohibition against viewing or recording what Gator software says about its users over users’ own Internet connections

About four thousand words through its license, Gator demands:

“Any use of a packet sniffer or other device to intercept or access communications between GP and the GAIN AdServer is strictly prohibited.”

Network structure for monitoring

As shown in the diagram at right, network monitors (or “packet sniffers”) are devices that inspect and report Internet transmissions from a local network. Sniffers are the ordinary and usual method of observing what data test computers send to and from the Internet. The transmissions from Gator’s software to its servers are sent from users’ PCs over users’ own Internet connections. But according to Gator’s license, users cannot take steps to observe what data Gator is collecting about them. Users must take Gator at its word as to Gator’s privacy policy, because users would violate Gator’s license agreement if they monitored Gator’s transmissions to confirm what data Gator sends.

Beyond constraining ordinary users, this license provision also blocks legitimate academic research. In “Measurement and Analysis of Spyware in a University Environment(PDF), three University of Washington computer scientists used packet sniffers to measure the prevalence of Gator software and to detect security holes in Gator software. If Gator’s then-current license was as quoted above, their research would seem to constitute a violation. My own past work might also be prohibited, because I have used packet sniffers in multiple projects testing Gator software: In comments to the FTC (PDF, pages 4-6), I reported the precise personal information transmitted by Gator. I previously built a system to report what ads Gator shows where, simply by repeating the format of requests made by ordinary Gator software. (See Documentation of Gator Advertisements and Targeting.)

Gator might be pleased to stop users and researchers from knowing the personal information Gator transmits, tracking the prevalence of Gator’s software, finding Gator’s security holes, and analyzing what ads Gator shows where. But should Gator be able to achieve these results merely by adding an extra sentence to its license agreement?

Getting Gator’s license

A Claria drive-by download prompt -- allowing the user to press 'Yes' and have software installed, without first seeing Claria's license agreement.A Claria drive-by download prompt — allowing the user to press ‘Yes’ and have software installed, without first seeing Claria’s license agreement.

It’s not always easy to read Gator’s license. For one, some Gator ActiveX “drive-by download” installers include defective license agreements. I have repeatedly observed (and have preserved in video recordings) Gator installers where a user’s specific request for the Gator license (by clicking on the “after accepting our agreements…” hyperlink) yields no license at all. In other instances, the license request yields only the first few lines of a license, presented in a web page that lacks scroll bars with which to view the rest of the license. In these circumstances, even users who specifically ask for Gator licenses do not receive them.

The Kazaa bundle also makes it difficult to review Gator’s license. For example, the current license agreement is longer than ever: The license takes 63 screens to display, compared to 56 in my screenshots of earlier this year.

The 'printable version' link, present in old Kazaa installers but no longer available.The ‘printable version’ link, present in old Kazaa installers but no longer available.

Gator has also made its license less accessible by removing one-click access to the full text of the license. In the past, Kazaa’s Gator install screen included a “Printable Version” link (see inset at right and screenshot) which opened the license in a separate text viewer, complete with print, search, and resize functions. However, the “Printable Version” link is omitted from Kazaa’s current Gator installer (screenshot). Users wanting a printable version of Gator’s license have no obvious direct way to get it.

In addition, Gator’s current license merges section headings with body text, making the license harder to read. Gator’s license (as shown by Kazaa earlier this year) previously included nearly three dozen section headings, each using bold type and/or blank lines to help separate and identify a license section. The left screen shot below depicts one such heading. But the current license (right image below) eliminates all but one instance of bold type and also omits the line breaks following all but four (of 37) section headings. With Gator’s section headings effectively indistinguishable from the license text, even determined users can’t readily find the sections of particular interest.

Representative image from Gator’s June 2004 Kazaa installer
   (with section headings) (red highlighting added)
Representative image from Gator's June 2004 Kazaa installer - with section headings included, with line breaks and bold type

The corresponding section of today’s Gator/Kazaa installer
   (note section heading merged into body text)
The corresponding section of today's Kazaa/Gator installer - without line breaks or bold type to separate section headings from their body text

What the License Doesn’t Say

In 5,900+ words of text, there’s no shortage of space for Gator to describe itself in terms that ordinary users can understand. But a search of the license shows Gator has failed even to mention the words and phrases most users associate with Gator’s products.

Although Gator is in the pop-up advertising business, Gator uses these terms infrequently. The license first mentions the word “pop-up” at page 18 of 63. The phrase “pop-up ad” appears only once in the license, at page 27, where the phrase is used to refer to pop-up surveys from Gator’s Feedback Research division. Gator’s pop-up ads are repeatedly described not as “advertisements” but, euphemistically, as “pop-up windows” and “floating images on top other windows” (sic). Nowhere in Gator’s license does Gator use the phrase “pop-up ad” to refer to the Gator pop-ups that cover web sites with advertisements for the sites’ competitors.

Gator calls itself an “adware” company, while critics often call Gator spyware. But neither “adware” nor “spyware” appears anywhere in Gator’s license agreement.

And On and On

I don’t claim to have found all the nuggets of controversy in Gator’s license agreement; there are surely additional problematic sections. Send suggestions for addition to this page.

Who Profits from Security Holes? updated November 24, 2004

I’ve written before about unwanted software installed on users’ computers via security holes. For example, in July I mentioned that 180solutions software was being installed through Internet Explorer vulnerabilities. (See also 1, 2, 3) More recently, researchers Andrew Clover and Eric Howes (among others: 1, 2) have described increasing amounts of unwanted software being installed through security holes.

Malware installed through a single security exploit

How bad is this problem? How much junk can get installed on a user’s PC by merely visiting a single site? I set out to see for myself — by visiting a single web page taking advantage of a security hole (in an ordinary fresh copy of Windows XP), and by recording what programs that site caused to be installed on my PC. In the course of my testing, my test PC was brought to a virtual stand-still — with at least 16 distinct programs installed. I was not shown licenses or other installation prompts for any of these programs, and I certainly didn’t consent to their installation on my PC.

In my testing, at least the following programs were installed through the security hole exploit: 180solutions, BlazeFind, BookedSpace, CashBack by BargainBuddy, ClickSpring, CoolWebSearch, DyFuca, Hoost, IBIS Toolbar, ISTbar, Power Scan, SideFind, TIB Browser, WebRebates (a TopMoxie distributor), WinAD, and WindUpdates. (All programs are as detected by Ad-Aware.) I have reason to believe that numerous additional programs were also installed but were not detected by Ad-Aware.

See a video of the installations. The partial screen-shot at left shows some of the new directories created by the security exploit.

Other symptoms of the infection included unwanted toolbars, new desktop icons (including sexually-explicit icons), replacement desktop wallpaper (“warning! you’re in danger! all you do with computer is stored forever in your hard disk … still there and could broke your life!” (s.i.c.)), extra popup ads, nonstandard error pages upon host-not-found and page-not-found error conditions, unrequested additions to my HOSTS file, a new browser home page, and sites added to my browser’s Trusted Sites zone.

I’ve been running similar tests on a daily basis for some time. Not shown in the video and screen-shot above, but installed in some of my other tests: Ebates Moe Money Maker, EliteToolBar, XXXtoolbar, and Your Site Bar.

Installation of 180solutions software through security holes is particularly notable because 180 specifically denies that such installations occur. 180’s “privacy pledge” claims that 180 software is “permission based” and is “programs are only downloaded with user consent and opt-in.” These claims are false as to the installation occuring in the video linked above, and as to other installations I have personally observed. Furthermore, 180’s separate claim of “no hiding” is false when 180 software is installed into nonstandard directories (i.e. into C:Windows rather than a designated folder within Program Files) and when 180 software is installed with a nonstandard name (i.e. sais.exe) rather than a name pertaining to 180’s corporate name or product names.

What’s particularly remarkable about these exploits is that the bad actors here aren’t working for free. Quite the contrary, they’re clearly expecting payment from the makers of the software installed, payments usually calculated on a per-install basis. (For example, see a 2003 message from 180solutions staff offering $0.07 per installation.) By reviewing my network logs, I can see the specific “partner” IDs associated with the installations. If the installers want to get paid, they must have provided accurate payment details (address, bank account number, etc.) to the makers of the programs listed above. So it should be unusually straightforward to track down who’s behind the exploits — just follow the money trail. I’m working on passing on this information to suitable authorities.

Note that the latest version of Internet Explorer, as patched by Windows XP Service Pack 2, is not vulnerable to the installations shown in my video and discussed above.

Cookie-Stuffing Targeting Major Affiliate Merchants

Certain affiliate web sites use pop-ups, pop-unders, IFRAMEs, JavaScript, and other methods to claim affiliate commissions on users purchases from affiliate merchants, even if users do not click on affiliates’ links to the merchants. This page documents selected affiliates using these practices and selected merchants suffering from these practices.

Overview & Summary

Affiliate tracking systems are intended to pay commissions to independent web sites (“affiliates”) when users click through these sites’ links to affiliate merchants. Merchants are not intended to pay commission when users merely visit affiliates’ sites. Instead, commission ordinarily only becomes payable in the event that a user 1) visits an affiliate’s site, 2) clicks through an affiliate link to a merchant, and 3) makes a purchase from that merchant.

However, some affiliates use “cookie-stuffing” methods to cause affiliate merchants’ tracking systems to conclude that a user has clicked through a tracking link (and to pay commissions accordingly) even if the user has not actually clicked through any such link. If the user subsequently makes a purchase from that merchant — immediately, or within the “return days” period specified by the merchant’s affiliate program — the affiliate then receives a commission on the user’s purchase.

This page presents the incentives that have allowed cookie-stuffing to continue, and captures selected examples of cookie-stuffing. See also the Affiliate Fraud Information Lookup, reporting of the number of observations Wesley Brandi and I have gathered in ongoing high-volume tests for cookie-stuffing.

Groups Affected by Cookie-Stuffing

Affiliate Networks Benefit from Cookie-Stuffing

Affiliate merchants ordinarily pay their affiliate networks a percentage of all affiliate revenues passing through the network. For example, Commission Junction’s public pricing list reports that CJ charges a merchant 30% of all amounts to be paid to affiliates. (In other words, if a merchant sells $1,000,000 of merchandise and pays a 5% affiliate commission, then it must pay $50,000 of commission to its affiliates. It must further pay 30% of $50,000, or $15,000, to Commission Junction.) As a result, in the first instance, affiliate networks benefit from cookie-stuffing. Such cookie-stuffing increases the total volume of sales flowing through affiliate networks, and increases the affiliate commissions on which, for example, CJ can charge a 30% fee.

Set against this short-run incentive is the long-term problem that if affiliate networks fall greatly in value to merchants, or if affiliate networks are perceived to facilitate fraud, then merchants may no longer be willing to pay affiliate commissions and affiliate network fees. But in the short run, affiliate networks benefit from more money flowing through their networks.

To date, affiliate networks have failed to aggressively pursue, stop, and punish those affiliates using cookie-stuffing. Indeed, LinkShare has repeatedly granted a $15,000 award to affiliates later found to be using cookie-stuffing. In each instance LinkShare subsequently withdrew the award after pressure from affiliates, merchants, and others. (See MediaPost coverage.) LinkShare’s repeated awards to affiliates using cookie-stuffing reveal that this technique extends to large affiliates and to well-regarded affiliates.

That said, affiliate networks’ black-letter rules generally officially prohibit cookie-stufing. For example, Commission Junction’s Publisher Service Agreement states that an affiliate publisher “may earn financial compensation … for transactions … made from such publisher’s web site … through a click made by a visitor … through an Internet connection (link) to a web site.” In all the examples set out below, no such click occurred, and therefore no commission is fairly earned given the limitations set out in the PSA.

Affiliate Merchants Suffer from Cookie-Stuffing

Affiliate merchants suffer financially from cookie-stuffing. Cookie-stuffing causes merchants to pay commissions that, according to program rules, they need not pay. Cookie-stuffing also causes merchants to pay commissions to the wrong affiliates — to affiliates who never caused an actual user click-through — which is likely to reduce the quality and effort of affiliates participating in the merchant’s program.

Cookie-Stuffers Profit from Cookie-Stuffing

Cookie-stuffing apparently proves profitable for those who do it. Suppose an affiliate ordinarily has a 10% click-through rate from its site to its merchants. The affiliate ordinarily receives affiliate commission only if a purchase is made by one of the 10% of users who clicks through the affiliate’s link. In contrast, by cookie-stuffing, the affiliate can claim commissions from any purchases made by the entire 100% of the affiliate’s visitors.

Rule-Following Affiliates Suffer from Cookie-Stuffing

Rule-following affiliates suffer from cookie-stuffing. For one, rule-following affiliates’ cookies may be overwritten by cookie-stuffers. Suppose a user clicks to affiliate site A, a rule-follower not using cookie-stuffing, and clicks through A’s link to a given merchant. The next day, the user visits affiliate site B, a rule-breaker using cookie-stuffing as to the same merchant site. Using cookie-stuffing, site B sets an affiliate tracking cookie that overwrites A’s cookie. If the user subsequently makes a purchase from the merchant, the affiliate commission will be paid to B, not A.

Rule-following affiliates also suffer from cookie-stuffing because cookie-stuffing encourages merchants to cut their commission rates. Without cookie-stuffing, merchants would be paying commissions on fewer orders. At least some merchants would likely then choose to increase commission paid on each order.

Specific Examples of Cookie-Stuffing

This section links to my research and testing, showing cookie-stuffing targeting major affiliate merchants. In initial reporting, I have focused on cookie-stuffing targeting merchants CJ designates as “featured” and on merchants who participate in discussion fora on ABestWeb.

The table below gives “clear-cut” examples of cookie-stuffing — affiliate HTML code that clearly shows intention to set affiliate cookies without a user clicking through any affiliate link.

MerchantCookie-Stuffing AffiliateDateNotes
Amazon (an independent merchant)Avxf (qufrho-20)10/6/08Broken IMG loaded within forum page. Details and video.
Amazon (an independent merchant)consumernow.com (jumpondealscom)11/6/04Obfuscation via a redirect. Details and video.
Amazon (an independent merchant)Bannertracker-script2/27/12JavaScript invisibly inserted into multiple independent sites via web server hacking. 200+ affiliate IDs in use. Details.
Amazon (an independent merchant) Imgwithsmiles 5/2/12Flash-based stuffing syndicated through Google AdSense display ad network. 49+ affiliate IDs in use. Details.
Argos (a CJ Advertiser)Eshop600 (3910892) 1/30/12Encoded JavaScript and invisible IMG. 26 cookies stuffed at once. Details.
Barnes & Noble (a CJ Featured BFAST Advertiser)dailyedeals.com (BFAST 26682568)11/4/04Misleading JavaScript comments. Details and video.
Buy.com (a CJ Advertiser)Couponcodesmall (2705091) 10/5/08Invisible IFRAME. Details and video.
Cooking.com (a LS Selected Merchant)dailyedeals.com (FZOkC4w7rNM)11/6/04Misleading JavaScript comments. Details and video.
Crucial.com (a CJ Featured Vantage Advertiser)dailyedeals.com (340672)11/2/04Details and video.
Dell (a LS Selected Merchant)jumpondeals.com (HAHu6s1Hzp4)11/5/04Obfuscation via a redirect. Details and video.
Dentalplans (an ABestWeb CJ merchant)consumernow.com (517038)11/6/04Obfuscation via a redirect. Details and video.
Drugstore.com (a LS Selected Merchant)dailyedeals.com (FZOkC4w7rNM)11/6/04Misleading JavaScript comments. Details and video.
Eastwood (an ABestWeb CJ merchant)aboutdiscounts.com (1311826)11/4/04SCRIPT after /HTML. Details and video.
eVitamins (an ABestWeb CJ merchant)couponvine.com (465743)11/4/04 Two-step JavaScript. Details and video.
Folica (a CJ merchant)ahugedeal.us (568228)11/8/04 Details and video.
Folica (a CJ merchant)ahugedeal.com (568228)10/25/05 Still occurring with same affiliate ID, 11+ months after prior reporting. Obfuscation via a redirect. Details and video.
FunToCollect (an ABestWeb CJ merchant)specialoffers.com (306244)11/6/04Obfuscation via a redirect. Details and video.
Globat (a CJ merchant)coupon-monkey.com (1446676)11/8/04/CLICK loaded in IMG tag. Details and video. Note: Coupon-monkey claims cookie-stuffing was accidental. Details.
HostGator (an independent merchant)Avxf (dsplcmnt01)10/6/08Broken IMG loaded within forum page. Details and video.
HSN (a CJ Featured BFAST Advertiser)coupons-coupon-codes.com (BFAST 38772000)11/4/04Obfuscation via external JavaScript and redirect. Details and video.
iPowerWeb (a CJ BFAST merchant)bids2buy.com (1525933)11/6/04Details and video.
Irv’s Luggage (an ABestWeb CJ merchant)edealinfo.com (600263)11/4/04IFRAME. Details and video.
JCWhitney (an ABestWeb CJ merchant)consumernow.com (517038)11/6/04Obfuscation via a redirect. Details and video.
LaptopsforLess (an ABestWeb CJ merchant)find-coupon.com (1525933)11/4/04Popup. Details and video.
Match.com (a CJ Featured Vantage Advertiser)asmartcoupon.com (1515738)11/4/04/CLICK loaded in IMG tags. Details and video.
MLB.COM (a CJ Featured Vantage Advertiser)edealinfo.com (600263)11/4/04IFRAME. Details and video.
Napster (a CJ front-page Featured Advertiser) coupons-online-coupon.com (1167113)11/4/04Popup. Details and video.
Netzero (a CJ Featured Vantage Advertiser)consumernow.com (517038)11/4/04Obfuscation via a redirect. Details and video.
Orbitz (a LS Selected merchant)thewinnersclub.net (HAHu6s1Hzp4)11/8/04Obfuscation via a redirect. Details and video.
Oreck (an ABestWeb CJ merchant)1couponstop.com (517038)11/4/04Obfuscation via a redirect. Details and video.
Overstock.com (an ABestWeb LS merchant)dailyedeals.com (FZOkC4w7rNM)11/5/04Misleading JavaScript comments. Details and video.
PetcareCentral (an ABestWeb CJ merchant)aboutdiscounts.com (276460)11/4/04SCRIPT after /HTML. Details and video.
Priceline (a CJ BFAST merchant)findsavings.com (40001021)11/7/04Details and video.
RapidSatellite (an ABestWeb CJ merchant)smartqpon.com (979227)11/4/04Details and video. Details and video.
Relaxtheback.com (a LS Selected Merchant)office-coupons-online.com (g/KOq4zlIIk)11/6/04 Details and video.
Shoes.com (an ABestWeb CJ merchant)ultimatecoupons.com / webbuyingguide.com (1417434)11/4/04Cookie tracking of popunder triggering. Details and video.
ShopNBC (a CJ Featured BFAST Advertiser)ultimatecoupons.com / webbuyingguide.com (BFAST 38954339)11/4/04IFRAME. Details and video.
SkinStore.com (a CJ BFAST merchant)discount-coupons-online.com (568228)11/6/04Details and video.
Spafinder.com (a LS Merchant)ultimatecoupons.com / webbuyingguide.com (OEu024dtHXs)11/6/04JavaScript URL variable. Details and video.
Toshiba (a CJ front-page Featured Advertiser)consumernow.com (517038)11/4/04Obfuscation via a redirect. Details and video.
TigerDirect.com (an ABestWeb CJ BFAST merchant)findsavings.com (39104038)11/5/04Details and video.
Travelocity (a CJ BFAST Selected merchant)xpcoupons.com (40031581)11/8/04IFRAME. Placed after /BODY. Details and video.

The table below gives additional examples of cookie-stuffing. In these examples, I see insufficient basis to determine whether the affiliate intended to set affiliate cookies without a user clicking through any affiliate link. Nonetheless, that is the net effect of the examples linked below.

MerchantCookie-Stuffing AffiliateDateNotes
DentalPlans (an ABestWeb CJ merchant)savings-center.com11/4/04FRAME. Details and video.
FunToCollect (an ABestWeb CJ merchant)goodbazaar.com11/4/04FRAME with META tags. Details and video.
JCWhitney (an ABestWeb CJ merchant)a2zrewards.com11/4/04FRAME with META tags. Details and video.
Travelocity (a CJ BFAST merchant)couponmountain.com11/8/04Redirect with META tags, broken BACK button. Details and video.

Because LinkShare’s compliance and quality problems are already well-known (e.g. as described above, as to LinkShare’s repeated Titanium Award missteps), the listing above focuses primarily on Commission Junction merchants.

Last Updated: May 8, 2012

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.