Intermix Media has reportedly agreed to pay $7.5 million to settle a lawsuit filed by the New York Attorney General, and if true, this represents the largest fine in a consumer online privacy action to date. In addition to agreeing to hire a Chief Privacy Officer, Intermix must agree to stop distributing its adware/spyware and redirect programs which the NYAG alleged were downloaded to consumers’ personal computers with inadequate notice, and then hidden to make it difficult to remove. Besides the annoyance which consumers rail about, often such hidden programs can be part of more elaborate identity theft and security breaches, sometimes without the knowledge of the company that created them. The lawsuit’s primary claims were false advertising and deceptive business practices under New York’s General Business Law statutes.
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