WhenU Challenges Utah Anti-Spyware Act

SALT LAKE CITY – An online advertising software company is challenging Utah’s new anti-spyware law set to take effect May 3.

WhenU, which offers desktops toolbars and pop-up and pop-under advertising, says the new Spyware Control Act violates free-speech guarantees and could unfairly harm its business. The company, formerly known as Gator, filed a motion for a temporary restraining order and preliminary injunction this week in the 3rd Judicial District Court in Salt Lake County.

As reported last month on XBiz, Utah is the first state to pass a law regulating spyware and other advertising software, which typically tracks computer users' actions online or uses a computer's resources to create pop up ads.

"WhenU has sought damages from Utah on the grounds that the act constitutes an unconstitutional taking of WhenU's property in violation of the Utah Constitution," the company said in a statement.

The Spyware Control Act bars companies from installing software that reports its users' online actions, sends any personal data to other companies, or pops up advertisements without permission.

The legislation, however, contains some loopholes – advertisements served by ordinary HTML or JavaScript are exempted, as are "cookies" often used to help personalize web pages. It also bars "context based" tools from triggering unrelated ads based on visiting websites on a certain topic.

WhenU said its software can only be installed after people agree to accept terms of service that explicitly describe all of its practices.

The Internet Alliance, a trade organization that includes America Online, eBay and Microsoft, has opposed anti-spyware legislation.

In a related matter, Salt Lake City-based 1-800-Contacts filed a suit last month, charging that its competitor Coastal Contacts used WhenU and other adware to deliver ads that infringe on its copyrights and trademarks.

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

UK House of Commons Moves to Tone Down Porn Amendments

The House of Commons has modified amendments to the U.K.’s pending Crime and Policing Bill, including provisions regulating “step” content, content featuring adults role-playing as minors, and performers’ ability to withdraw consent.

AEBN Reveals Ariel Demure as Top Trans Star for Q1 of 2026

AEBN has named its top trans stars for the first quarter of 2026, with Ariel Demure landing atop the leaderboard.

Final IRS 'No Tax on Tips' Rule Excludes Pornography

The Internal Revenue Service on Monday published final regulations on the “No Tax on Tips” provision included in the “One Big Beautiful Bill Act,” offering new tax deductions for tip workers but excluding revenue received for “pornographic activity.”

Pennsylvania Legislature Weighs 'Porn Tax' Bill

The Pennsylvania State Senate is considering a bill that would impose a 10% tax on the revenue of adult websites doing business in that state.

Trump Tariffs Refund Process to Launch April 20

U.S. Customs and Border Protection (CBP) will begin the process of refunding duties paid under the Trump administration’s sweeping program of tariffs by providing, starting April 20, an online tool for submitting refund claims.

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Adds Real-Time Speech Translation

Dreamcam has introduced Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a planned ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Show More