Thu April 29, 2004 03:56 PM ET
By Peter Kaplan
WASHINGTON (Reuters) - U.S. lawmakers vowed on Thursday to pass legislation to stop deceptive software even though regulators advised against any new laws.
Both Republicans and Democrats on the House Energy and Commerce Committee said new laws were needed to stop the proliferation of so-called "spyware" that hides in users' computers and secretly monitors their activities.
"There is no more pernicious, intrusive activity going on on the Internet today," said Rep. Joe Barton, chairman of the House Energy and Commerce Committee. "We really intend to do something about this."
Barton, of Texas, and other members attending an Energy and Commerce subcommittee hearing, backed a bill that would require purveyors of spyware on the Internet to notify people before loading new software on their machines.
The bill, introduced by Rep. Mary Bono, a California Republican, also would require that those companies identify themselves to computer users, and that the spyware be easily removable.
Lawmakers at the hearing described spyware as a "cancer" on the Internet. It can sap computing power, crash machines and bury users under a blizzard of unwanted ads. It can capture passwords, credit-card numbers and other sensitive data.
Many popular programs such as Kazaa and Morpheus that allow users to copy music and movies from each other's hard drives come bundled with applications that serve up pop-up ads or other marketing tools as a way to subsidize costs.
An EarthLink scan of 1.1 million computers released two weeks ago turned up more than 300,000 malevolent programs.
But the proposed legislation got a cool reception from regulators at the Federal Trade Commission, who said they already have the laws they need to combat the spread of spyware.
"The problem is not one of legal authority. It is one of developing and bringing a case in federal court," FTC consumer protection chief Howard Beales told the committee.
Beales said some spyware is actually used to help computer users. He and FTC commissioner Mozelle Thompson said it would be difficult to craft a law that would distinguish between spyware and legitimate software.
Beales also said new laws could be burdensome to legitimate software companies, requiring consent every time any piece of software is added to their customers' machines.
Thompson advised committee members to give the software industry a chance to solve the problem without new government intervention.
Members of the committee were unmoved by those arguments, however, and they questioned whether the FTC has done enough to stop the spread of problem.
The dearth of cases brought by the agency, they said, shows that new laws are necessary.
"What is wrong with a consumer simply knowing?" Bono asked.
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