Direct Revenue was a New York City company which distributed software (a downloadable adware client) that displays pop-up advertising on web browsers.
The company's major clients included Priceline, Travelocity, American Express, and Ford Motors.
Cty., March 12, 2008), a New York trial court dismissed the attorney general's deceptive-and-illegal-business-practices case against Direct Revenue.
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.
[3] On February 16, 2007, DirectRevenue settled with the Federal Trade Commission without admitting to any wrongdoing and was barred from using affiliates who engage in "drive-by downloads" or what the FTC deems deceptive 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 argued that Direct Revenue should be liable because its servers interacted with the consumers’ computers in the software-installation process.