PANEL ALSO ADOPTS STEARNS' AMENDMENT TO THE SPY ACT

Washington, Feb 16, 2005 - The Commerce, Trade & Consumer Protection Subcommittee, with Rep. Cliff Stearns (R-FL) as Chairman, today approved H.R. 29, the Spy Act. The legislation tackles the growing problem of spyware, software that gathers information from a computer about a person or organization without their knowledge. "It is becoming increasingly evident that the battle against spyware is turning into an all-out technology arms race," stated Stearns. "For example, according to the software firm Webroot, in just the two months between October and December 2004, the instance of malicious system monitors rose 230 percent and the use of Trojan programs used to break through security defense rose 114 percent."

The Spy Act stops deceptive and prohibited practices such as keystroke logging, web page hijacking, and unsolicited ads that cannot be deleted. It establishes a clear opt-in for consumers wishing to download monitoring software, and requires that it be easily disabled. The measure also establishes a uniform federal law regulating spyware and includes enhanced penalties.

During consideration of H.R. 29, the panel adopted an amendment offered by Stearns that clarified that the bill does not apply to 'cookies' (text files placed on a consumer's hard drive by the visited web site), including 'third party cookies' (cookies readable by more than one affiliated entity); ensures that computer hijacking is prohibited; makes clear that embedded ads are not subject to labeling for identification; and makes minor conforming and technical changes. Explained Stearns, "My amendment enhances the goals of H.R. 29, legislation that roots out the abuse of spyware while providing additional clarity for those engaged in legitimate business and commerce in the online marketplace."