WhenU Challenges Utah Anti-Spyware Act

SALT LAKE CITY – An online advertising software company is challenging Utah’s new anti-spyware law set to take effect May 3.

WhenU, which offers desktops toolbars and pop-up and pop-under advertising, says the new Spyware Control Act violates free-speech guarantees and could unfairly harm its business. The company, formerly known as Gator, filed a motion for a temporary restraining order and preliminary injunction this week in the 3rd Judicial District Court in Salt Lake County.

As reported last month on XBiz, Utah is the first state to pass a law regulating spyware and other advertising software, which typically tracks computer users' actions online or uses a computer's resources to create pop up ads.

"WhenU has sought damages from Utah on the grounds that the act constitutes an unconstitutional taking of WhenU's property in violation of the Utah Constitution," the company said in a statement.

The Spyware Control Act bars companies from installing software that reports its users' online actions, sends any personal data to other companies, or pops up advertisements without permission.

The legislation, however, contains some loopholes – advertisements served by ordinary HTML or JavaScript are exempted, as are "cookies" often used to help personalize web pages. It also bars "context based" tools from triggering unrelated ads based on visiting websites on a certain topic.

WhenU said its software can only be installed after people agree to accept terms of service that explicitly describe all of its practices.

The Internet Alliance, a trade organization that includes America Online, eBay and Microsoft, has opposed anti-spyware legislation.

In a related matter, Salt Lake City-based 1-800-Contacts filed a suit last month, charging that its competitor Coastal Contacts used WhenU and other adware to deliver ads that infringe on its copyrights and trademarks.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

On-Chain JAV Distribution Platform 'HandSome' Goes Live With Open Beta

Fukuoka tech firm Fidem has officially rolled out an open beta version of HandSome, a new Japanese Adult Video (JAV) content distribution platform built on blockchain technology.

Arcom Investigates Mym Over SREN Compliance

French media regulator Arcom is investigating creator platform Mym to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

England, Wales to Enforce 'Extreme' Content Laws Starting Nov. 6

England and Wales will begin enforcing new laws criminalizing depictions of “non-fatal strangulation,” as well as sexual content in which adults portray underage characters, starting Nov. 6, the U.K. Ministry of Justice announced Friday.

Report: UK Film Classification Board to Monitor 'Extreme' Content Online

The U.K. government has tapped the British Board of Film Classification (BBFC) for a pilot program to monitor online pornography for illegal and “extreme” content, as it prepares to enforce new content restrictions, British media outlet Sky News is reporting.

New Federal Report Slams Debanking but Ignores Adult Industry

The Office of the Comptroller of the Currency (OCC) on Wednesday released a report on debanking activities at nine large national banks, but omitted any mention of the adult industry, despite previously identifying it as a sector facing banking discrimination.

EU Court Rejects Stripchat Challenge of Past VLOP Designation

The EU’s General Court on Wednesday ruled against Stripchat in a lawsuit seeking to annul a 2023 European Commission decision designating the site as a “very large online platform” (VLOP) under the Digital Services Act (DSA).

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

Luxembourg Media Regulator Fines LiveJasmin for AV Noncompliance

The Luxembourg Independent Audiovisual Authority (ALIA) has levied a fine of 25,000 euros (approximately $28,000) against webcam platform LiveJasmin for failing to comply with provisions of the country’s Electronic Media Law.

AdultHTML Introduces Subscription Option for Website Owners

AdultHTML has added a subscription option for its web development service, allowing site owners to pay a monthly fee for access to developers and tools.

Show More