Internet marketing firm settles spyware suit

Intermix Media has settled with the New York Attorney General following allegations the company secretly installed spyware. AG Eliot Spitzer filed a lawsuit against the company in April.

Under the terms of the proposed settlement, the company would pay $7.5 million over three years to New York state, and would permanently discontinue distribution of its adware, redirect and toolbar programs.

Los Angeles-based Intermix said it had already voluntarily ceased distributing those programs before Spitzer's legal action. The company has not admitted any wrongdoing or liability in the case.

"We are pleased to announce an agreement in principle that should allow for an amicable resolution of this matter," said Richard Rosenblatt, chief executive officer of Intermix in a statement. He added his company's mandate was to "remove this obstacle" and "place this legacy business and related issues behind us."

Spitzer filed suit against Intermix in April, alleging that the company installed programs that redirect web addresses, add toolbars and deliver pop-up ads without giving consumers proper notice.

Intermix expects the settlement agreement to be formalized within the next few weeks.

In March, SC Magazine looked at the problems of dealing with spyware.

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