Marketers had complained that they would be unable to legitimately target on-line ads if the proposals were not changed.
While existing US legislation deals with the more fraudulent aspects of spyware, such as keystroke logging, those consumer protection laws do nothing to prevent the simple existence of spyware – software that is used to collect information about an individual or organisation without their knowledge.
Spyware or adware – which generates pop-up ads – can be deposited on a computer as an e-mail attachment or as a web site download. Both types tend to make computers sluggish and less efficient, which is very frustrating for users.
Congress tried to tackle the problem last year, but the "Securely Protect Yourself Against Cyber Trespass Act", or SPY Act, which was passed by the House last year, ran out of time in the Senate.
The new bill, which bears the same name as its predecessor, protects individuals from unknowingly downloading and activating spyware by requiring that consumers receive a clear and conspicuous notice prior to the transmission of spyware programs.
Sponsored by Republican Congresswoman Mary Bono and Democrat Congressman Ed Towns, the bill also includes provisions to prohibit unfair or deceptive behaviour such as keystroke logging, computer hijacking and the display of advertisements that cannot be closed.
A late amendment clarifies that the bill does not apply to cookies, including third-party cookies (those readable by more than one affiliated entity). It also makes clear that embedded ads are not subject to labelling for identification and makes minor conforming and technical changes.
The bill will now be considered by the full House Energy and Commerce Committee, after which it will be sent to the floor of the House of Representatives for final passage within the first part of the year.
The legislation will not become law however, until the Senate and the President have approved the proposals.