In a groundbreaking settlement with the New York Attorney General, Priceline, Travelocity, and Cingular have all agreed to pay fines and reform their use of Adware. The ruling, moreover, sets a new precedent in how online advertisers can reach users. As Press Esc reports:

“Advertisers will now be held responsible when their ads end up on consumers’ computers without full notice and consent,” Andrew Cuomo said. “Advertisers can no longer insulate themselves from liability by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers. [...]"

In a lawsuit filed in April 2006, the Attorney General alleged that Direct Revenue installed adware programs onto millions of computers worldwide that delivered a steady stream of advertisements, monitored web sites visited by users, and collected data typed into web forms — without adequate notice or the consent of consumers.

In addition, the adware programs were difficult to remove and consumers who had previously downloaded the company’s programs without full notice and consent, known as “legacy users,” continued to receive Priceline, Travelocity and Cingular ads through those programs.

Advertising companies must [now] make it practicable for consumers to remove the adware from their computers, obtain consent to continue serving ads to legacy users and require their affiliates to meet all of these same requirements.

This case really underscores how there's such a thing as ethical advertising. It is also an important case in protecting the internet from overly restrictive and reactionary legislation.

Of course, advertisers and marketers will probably continue to get a bad wrap from users who just want the free online content, don't want to pay for it, and are too lazy to read Terms of Use Agreements. However, someone has to finance online content somewhere along the line. It's good to know that there are another set of clear rules protecting the online advertising industry from damages incurred by only a handful of bad apples.