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

Brazil Begins Monitoring 18 Adult Sites for AV Compliance

Brazil’s National Data Protection Authority (ANPD) is now monitoring 18 high-traffic adult websites for compliance with the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires such sites to age-verify users located in Brazil.

Ofcom Fines First Time Videos $100,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 80,000 pounds (more than $100,000) against First Time Videos, which operates FTVGirls.com and FTVMilfs.com, for failing to implement age checks required for compliance with the Online Safety Act.

Curves Ahead: How BBW Creators are Turning Differentiation Into Competitive Advantage

For centuries, curves have been celebrated as a symbol of beauty, sensuality and power. From the soft opulence of Rubens paintings to the glamorous silhouettes of pinup icons, fuller figures have long occupied a place in art, fashion and fantasy.

Woodhull Freedom Foundation to Host Virtual 'Pride' Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting a Pride Month virtual edition of its series “Fact Checked by Woodhull.”

'InMelanin' Relaunches Through PAYSITE

InMelanin.com has officially relaunched through PAYSITE.

Pearl Industry Network Partners With Takedown Piracy

Industry trade group Pearl Industry Network (PiN) has officially partnered with Takedown Piracy.

Hollywood Reporter Spotlights XBIZ Miami in Feature on Fan Platforms

Last month's XBIZ conference serves as the setting for a new Hollywood Reporter feature examining the competitive fan platform market.

F2F, Image Angel Launch 'Forensic Watermarking' for Traceability

Friends2Follow (F2F) and Image Angel have partnered to launch a new traceability solution to combat unauthorized content sharing with the use of forensic watermarks.

EU Court: France Can Require Foreign Sites to Implement AV

The European Union’s Court of Justice ruled on Tuesday that France may require pornographic websites based in other EU states to implement age verification in accordance with French law, as long as France follows EU electronic commerce rules.

LoyalFans Announces 'Group Walkthrough' Online Event Series

LoyalFans has announced its new “Group Walkthrough” online event series for creators, taking place every Tuesday and Thursday.

Show More