Utah Regulating Spyware, Adware

SALT LAKE CITY - Utah became the first state in the nation this week to pass a law regulating spyware and other advertising software.

On Wednesday, Utah Gov. Olene Walker signed a law allowing individuals and companies to sue in Utah for unsolicited spyware advertising on their proprietary websites.

HB323, which goes into effect May 3, makes it illegal to create or install spyware, which is software that monitors Internet activity and sends that information elsewhere, usually without the user being aware of it or consenting to it.

The Utah law bars companies from installing software that reports its users’ online actions, sends any personal data to other companies, or pops up advertisements without permission. It also bars “context based” tools from triggering unrelated advertisements based on visiting Web sites on a certain topic.

The law does contains loopholes, however. Advertisements served by ordinary HTML or JavaScript are exempted, as are the ordinary “cookies” often used to help personalize Web pages.

The Software & Information Industry Association (SIIA) said Utah’s new law was ratified to hastily. “[The state is] moving too far without looking at what the issues are,” said Mark Bohannon, general counsel and senior vice president of public policy for SIIA.

Most industry groups, he said, only became aware of the piece of legislation in late February.

Bohannon said he is afraid the bill will become a model for other states to follow.

Lawmakers in Iowa and California also have introduced their own spyware control proposals in the past month, and federal lawmakers and regulators already are looking at the issue. A U.S. bill on the issue was drafted in February by the authors of the so-far ineffective Can-Spam Act -- Sen. Conrad Burns (R-Mont.), Ron Wyden (D-Ore.) and Barbara Boxer (D-Calif.).

The legislative trend is raising worried eyebrows among some Internet businesses, which are concerned that state laws may unintentionally hamper some means of doing business on the Internet.

“What’s called spyware is not innately a bad thing,” Emily Hackett, executive director of the Internet Alliance, a trade organization that includes America Online, eBay and Microsoft, told reporters. “What’s called a pop-up is not innately a bad thing.”

Earlier this year, the U.S. District Court for the Southern District of New York issued a preliminary injunction against adware company WhenU, ruling it violated trademark laws. That decision is currently on appeal before the 2nd U.S. Circuit Court of Appeals.

Meanwhile, a court in Germany on Thursday issued a preliminary injunction against Claria Corp. prohibiting pop-up ads, on Hertz Corp.’s website. Claria was previously known as Gator Corp.

The decision in Cologne is the first court ruling in Germany related to adware software.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Italian Court in Aylo Case Limits International Reach of AV Rules

An Italian administrative court has ruled that Italy’s recently-enacted age verification rules for adult content may not currently be enforced against sites based in other EU member states, pending further procedural action under the EU’s Directive on Electronic Commerce.

OCC, FDIC Prohibit Use of 'Reputation Risk' by Regulators

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on Tuesday issued a final rule codifying the elimination of ‘reputation risk’ from their supervision of financial institutions.

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

AV Bulletin: West Virginia Enacts AV Law, Ohio 'Innocence Act' Advances

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Clips4Sale Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of content platform Clips4Sale in a case against a website using a similar domain to impersonate the site.

Pineapple Support, SextPanther to Host Stress Management Support Group

Pineapple Support and SextPanther are hosting a free online support group focused on stress management for performers.

Goddess Tangent Launches New Site Through Grooby's Blue.xxx

Goddess Tangent has launched her new membership site, TangentOD.com, through Grooby's website management company Blue.xxx.

Show More