Keeping adware under control

By Philippa Hore.

Key Points:
Two industry bodies have announced that they will work together to develop national guidelines for the use of adware, but it is not clear when the guidelines will be released or what form they will take.

The Internet Industry Association (IIA) and the Australian Direct Marketing Association (ADMA) have announced in a recent media release that they will co-operate in the development of best practice guidelines for online marketers and website operators on the appropriate use of adware. By doing so, these industry bodies hope to encourage a more informed and responsible use of adware in Australia, increase user confidence and avoid the need for government regulation of this technology.

What is adware?

There is no agreement on the definition of adware and, in particular, what sets it apart from spyware. The distinction has become particularly vexing in the United States, where anti-spyware vendors have been sued by adware developers for including adware as part of the "spyware" blocked by their programs. In at least one case, an anti-spyware developer agreed to rewrite part of its materials as a result.

The media releases about the development of the Australian guidelines freely acknowledge that there is no universally accepted definition of adware, but indicate that it is generally understood to mean software which can:

• deliver information and advertising to users;
• provide information to website owners about user preferences;
• help target advertising to meet a user's likely interests; and
• personalise the user's online experience.

What's the problem with adware?

The IIA/ADMA media release states "Adware is usually considered less harmful than spyware because it is not used for malicious purposes. In many cases it actually assists end users by providing an internet experience more tailored to their needs ... it may nevertheless be considered intrusive by some and potentially damaging to trust online, particularly when it is used without the knowledge and consent of users."

The impact that adware and spyware can have on internet use is illustrated by the June 2005 findings of the US Pew Internet and American Life Project, which found that 91% of internet users in the USA say they have made at least one change in their online behaviour to avoid unwanted software programs. For example:

• 48% have stopped visiting particular websites that they fear might infect them with unwanted programs;
• 25% have stopped downloading music or video files from peer-to-peer networks to avoid getting unwanted software programs on their computers; and
• 18% have started using a different web browser to avoid software intrusions.

In addition, 43% of internet users said that they have had spyware or adware on their computers.

These results provide a clear indication that spyware and adware are having a significant impact on the confidence and behaviour of internet users.

What will the proposed Australian guidelines cover?

According to the media release, the guidelines will contain some basic do's and don'ts for businesses using adware, and may also indicate when the informed consent of end users should be obtained before adware is used.

There may be some cynicism about the fact that the guidelines will be developed by internet and marketing industry representatives, rather than by consumer or privacy advocates. IIA and ADMA have indicated that they will explore the expectations of users when developing the guidelines though, so it will be interesting to see what balance the guidelines draw between the interests of internet users and of the organisations that IIA and ADMA represent.

What status will the guidelines have?

It's unclear whether the proposed guidelines will take the form of an enforceable industry code of practice or less formal guidelines (which unscrupulous operators could simply choose to ignore).

What's the timeframe?

It's also unclear from the media releases when we can expect to see the guidelines, or a whether a discussion draft will be released for public comment.

We will keep an eye on developments and let you know when more information comes to light.

For further information, please contact Philippa Hore.