The Spy Act
By David Fishman

In June of 2004, the anti-spyware bill called "Securely Protect Yourself Against Cyber Trespass Act" (SPY Act: HR 2929) was voted on in the energy Commerce Committee. This is the House Committee on Energy and Commerce. This Act was approved by a vote of 45 to 4, however it was going to be deliberated at a House-of-Representatives plenary session at a later date.


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Now recognized in the subcommittee, the SPY Act was recognized as making the law, that to legally place software on a consumer desktop a company needed too clearly obtain a user's consent at the time of installation for each specific type of software.

In the spyware workshop held in April, this year, the U.S. Federal Trade Commission (FTC) expressed the view "the legal regulation on spyware had no necessity." In other words, current legislation is enough to help the FTC regulate this industry.

This week, the regulation bill of the SPY ACT was approved at the U.S. House-of-Representatives plenary session. The Act includes fines of up to $3 million dollars for an infraction. The vote passed by a resounding victory of 399 to 1 in favor of the Act. 

The proposed ACT (HR2929) currently called Spy Act (Securely Protect Yourself Against Cyber Trespass Act) is using, as its base, the spyware regulation proposal by Senator Mary Bono of California.

At the time of draft this Act does not provide a clear process of how a company must obtain consent from a consumer prior to the software acquisition.

HR 2929, which has passed through the energy Commerce Committee, serves as a regulation bill centering on the Federal Trade Commission (FTC), and is determined to find a way to protect the consumer from unfair business practices that can harm their personal computer.

It is expected that the President will sign this bill into law within the next 6 months if not sooner. At that time the download space and the companies involved will need to change their business practices to fit the current law. Right now it is not illegal for a company to download software onto a computer without explicit consent. There may be moral issues involved, but it is not currently illegal. No matter what opinion one holds about spy ware, it is important for this industry to have regulation so that it is clear what rules of business are allowable. The regulation will force consolidation, but it will also strengthen the space in the long term.


David Fishman
dfishman@wrpmedia.com

 

  Also on the Confidential:

Digital Thoughts: The Age of the Publisher

Trends Report: Regulating Downloads

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