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.infobox-subbox{padding:0;border:none;margin:-3px;width:auto;min-width:100%;font-size:100%;clear:none;float:none;background-color:transparent}.mw-parser-output .infobox-3cols-child{margin:auto}.mw-parser-output .infobox .navbar{font-size:100%}@media screen{html.skin-theme-clientpref-night .mw-parser-output .infobox-full-data:not(.notheme)>div:not(.notheme)[style]{background:#1f1f23!important;color:#f8f9fa}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .infobox-full-data:not(.notheme) div:not(.notheme){background:#1f1f23!important;color:#f8f9fa}}@media(min-width:640px){body.skin--responsive .mw-parser-output .infobox-table{display:table!important}body.skin--responsive .mw-parser-output .infobox-table>caption{display:table-caption!important}body.skin--responsive .mw-parser-output .infobox-table>tbody{display:table-row-group}body.skin--responsive .mw-parser-output .infobox-table tr{display:table-row!important}body.skin--responsive .mw-parser-output .infobox-table th,body.skin--responsive .mw-parser-output .infobox-table td{padding-left:inherit;padding-right:inherit}}</style><style data-mw-deduplicate="TemplateStyles:r1242257876">.mw-parser-output .ib-company .infobox-label{padding-right:0.5em}.mw-parser-output .ib-company .infobox-data,.mw-parser-output .ib-company .infobox-below{line-height:1.35em}.mw-parser-output .ib-company-logo img{background-color:#f8f9fa}.mw-parser-output .ib-company-locality,.mw-parser-output .ib-company-country{display:inline}</style><table class="infobox ib-company vcard"><caption class="infobox-title fn org">Direct Revenue</caption><tbody><tr><th scope="row" class="infobox-label">Industry</th><td class="infobox-data category"><a href="/wiki/Software" title="Software">Software</a></td></tr><tr><th scope="row" class="infobox-label">Founded</th><td class="infobox-data">2002</td></tr><tr><th scope="row" class="infobox-label">Founder</th><td class="infobox-data agent"><a href="/wiki/Insight_Venture_Partners" class="mw-redirect" title="Insight Venture Partners">Insight Venture Partners</a></td></tr><tr><th scope="row" class="infobox-label">Defunct</th><td class="infobox-data">2007</td></tr><tr><th scope="row" class="infobox-label">Headquarters</th><td class="infobox-data adr"><div class="ib-company-locality locality"><a href="/wiki/New_York_City" title="New York City">New York City</a></div></td></tr></tbody></table> <p><b>Direct Revenue</b> was a New York City company which distributed software (a downloadable adware <a href="/wiki/Client_(computing)" title="Client (computing)">client</a>) that displays pop-up advertising on web browsers. It was founded in 2002 and funded by <a href="/wiki/Insight_Venture_Partners" class="mw-redirect" title="Insight Venture Partners">Insight Venture Partners</a>,<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> known for creating <a href="/wiki/Adware" title="Adware">adware</a> programs. Direct Revenue included Soho Digital and Soho Digital International. Its competitors included <a href="/wiki/Claria" class="mw-redirect" title="Claria">Claria</a>, When-U, Ask.com and products created by eXact Advertising. The company's major clients included Priceline, Travelocity, American Express, and Ford Motors. Direct Revenue's largest distributors were Advertising.com (acquired by AOL) and 247 Media (acquired by WPP). In October 2007, Direct Revenue closed its doors. </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="New_York_State_OAG_lawsuit"><span class="anchor" id="OAG_Suit_Against_Direct_Revenue"></span>New York State OAG lawsuit</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Direct_Revenue&action=edit&section=1" title="Edit section: New York State OAG lawsuit"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>On April 4, 2006, <a href="/wiki/New_York_State_Attorney_General" class="mw-redirect" title="New York State Attorney General">New York State Attorney General</a> <a href="/wiki/Eliot_Spitzer" title="Eliot Spitzer">Eliot Spitzer</a> filed suit against Direct Revenue in <a href="/wiki/Manhattan" title="Manhattan">New York County</a> <a href="/wiki/New_York_Supreme_Court" title="New York Supreme Court">Supreme Court</a>, alleging that the company's software-distribution practices violated New York's General Business Law.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> In March 2008, Direct Revenue was granted a <a href="/wiki/Motion_to_dismiss" class="mw-redirect" title="Motion to dismiss">motion to dismiss</a> all the OAG's allegations and the case was dismissed. In <i>People v. Direct Revenue LLC</i>, No. 401325/06 (N.Y. Sup.Ct., N.Y. Cty., March 12, 2008), a New York trial court dismissed the attorney general's deceptive-and-illegal-business-practices case against Direct Revenue. The AG sought billions of dollars in penalties against Direct Revenue,<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (September 2011)">citation needed</span></a></i>]</sup> seeking to assert the rights of millions of consumers across the country who installed the Direct Revenue adware client. </p><p>29 transactions with Direct Revenue (or its distributors) were alleged. In transactions where the attorney general's investigator dealt directly with Direct Revenue, the installation of the adware client was preceded by a license agreement explaining how the adware client operated and how to <a href="/wiki/Uninstall" class="mw-redirect" title="Uninstall">uninstall</a> it; the agreement also explained the limitations on Direct Revenue's liability. In each case the investigator clicked "yes" on a button, indicating assent to the agreement. There were problems with some installations that were initiated by Direct Revenue's third-party distributors (for example, the license agreement and uninstall instructions were not always displayed prior to installation). However, the court held that Direct Revenue was protected by its Standard Distribution Agreement, a document that directed the third-party distributors to obtain legally valid affirmative consent and make all legally necessary disclosures prior to installation of the adware client. Turning back claims based on the 29 transactions completed by state investigators, the court said there was no basis to entertain the attorney general's claims on behalf of all other individuals who allegedly downloaded the Direct Revenue adware client. Finally, it held, disgorgement of profits would not be an appropriate remedy in this case; Direct Revenue distributed its adware client free of charge and took nothing of value from consumers who downloaded it.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>On February 16, 2007, DirectRevenue settled with the <a href="/wiki/Federal_Trade_Commission" title="Federal Trade Commission">Federal Trade Commission</a> without admitting to any wrongdoing and was barred from using affiliates who engage in "drive-by downloads" or what the FTC deems deceptive practices. They were also ordered to pay a settlement of $1.5 million.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> On June 26, 2007 the FTC issued final approval of the settlement:<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> "No portion of the payment shall be deemed a payment of any fine, penalty, or punitive assessment". Direct Revenue closed several months later, in part due to the settlement.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Case_analysis"><span class="anchor" id="OAG_Case_Analysis"></span>Case analysis</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Direct_Revenue&action=edit&section=2" title="Edit section: Case analysis"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In <i>People v. Direct Revenue</i>, the New York Attorney General in 2008 attempted to prevent Direct Revenue from distributing software that served pop-up advertising software on consumers’ computers. Direct Revenue did not charge fees to consumers; instead, it charges fees to the companies whose products it advertises. One line of attack by the New York Attorney General focused on Direct Revenue's “click-wrapped” (where the user clicks on “I accept”) end-user license agreement (EULA) and Direct Revenue's alleged deceptive and illegal practices. The court granted Direct Revenue's motion to dismiss the claims, noting that sufficient disclosure was given in the EULA and the required elements for an enforceable agreement were followed. New York then focused on the customer agreements of Direct Revenue's resellers, in an attempt to hold Direct Revenue liable. The result was the same as with the EULA—Direct Revenue was not held liable. </p><p>New York conceded that Direct Revenue's resellers were independent contractors, rather than agents. Generally, a principal is not liable for acts of an independent contractor due to the lack of control over how the contractor's work is performed. In addition, the court noted that Direct Revenue's software-distribution agreement required its distributors to obtain consumer consent consistent with the EULA and prohibited distributors from excluding themselves as agents of Direct Revenue. New York argued that Direct Revenue should be liable because its servers interacted with the consumers’ computers in the software-installation process. The court pointed out that participation in installation was insufficient liability, in the absence of participation in deceptive conduct which induced the installation. Finally, New York argued that Direct Revenue should be held liable for the actions of its resellers, on the ground that Direct Revenue ratified the conduct of its resellers. The court ruled that mere knowledge of consumer complaints was insufficient to impose liability on Direct Revenue, in light of the fact that when Direct Revenue had actual knowledge of reseller misconduct, it took steps to remedy the problem.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Programs"><span class="anchor" id="Programs_created"></span>Programs</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Direct_Revenue&action=edit&section=3" title="Edit section: Programs"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><b>Aurora</b>: Released April 2005,<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> Aurora is an adware client notorious for the nail.exe component,<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> and has been criticized on several fronts.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup></li> <li><b>BestOffers</b>: Released September 2005,<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> BestOffers is an adware client.<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup></li> <li><b>BetterInternet</b>: Released mid-2003,<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> BetterInternet is another adware client,<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> and is also used as an umbrella term for several other clients.</li> <li><b>MyPCTuneUp</b>: the uninstaller which Direct Revenue provided for their software</li></ul> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Direct_Revenue&action=edit&section=4" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a rel="nofollow" class="external text" href="http://www.direct-revenue.com/">Direct Revenue official site</a></li> <li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20091106072454/http://www.imediaconnection.com/content/7734.imc">Q&A With Direct Revenue's CEO</a></li> <li><a rel="nofollow" class="external text" href="http://www.internetretailer.com/internet/marketing-conference/00063-direct-revenue-appoints-andrew-reiskind-chief-privacy-officer.html">Direct Revenue Appoints Chief Privacy Officer</a></li> <li><a rel="nofollow" class="external text" href="http://www.sitepronews.com/2009/03/02/ecommerce-websites-3-tips-to-avoid-liability-for-actions-of-your-online-resellers/">Chip Cooper's Analysis of the OAG Case</a></li> <li><a rel="nofollow" class="external text" href="http://www.siteadvisor.com/sites/direct-revenue.com">McAfee SiteAdvisor ratings page</a></li> <li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20060709040740/http://www.businessweek.com/magazine/content/06_29/b3993001.htm">The Plot To Hijack Your Computer</a> <i>BusinessWeek</i>, July 17, 2006</li> <li><a rel="nofollow" class="external text" href="http://www.securityfocus.com/brief/615?ref=rss">Spyware purveyor DirectRevenue closes down</a> Security Focus - Published October 25, 2007</li> <li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20140319222550/http://philosecurity.org/2009/01/12/interview-with-an-adware-author">Interview with an Adware Author</a> - a former Direct Revenue programmer describes in detail the stealth and other ingenious techniques used by the company's software to disguise itself, remove competitor software and protect itself from being removed. Philosecurity - Published January 12, 2009.</li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Direct_Revenue&action=edit&section=5" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20060709040740/http://www.businessweek.com/magazine/content/06_29/b3993001.htm">"The Plot To Hijack Your Computer"</a>. 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