AOL's Advertising.com has agreed to a settlement regarding FTC charges that it tricked consumers into downloading software that spawned pop-up ads, Mediaweek reports (via MediaBuyerPlanner). The FTC charged that Advertising.com ran ads for its SpyBlast software, which, when downloaded, installed pop-up ad software. The bundled adware was not disclosed to the user except in the end-user license agreement.

Under the settlement, Advertising.com will be required to "clearly and prominently" disclose that consumers who install SpyBlast will receive contextual pop-up ads, the AP reports. The settlement also requires that Advertising.com take steps to allow the FTC to monitor compliance. The consent order doesn't cover AOL, which bought Advertising.com in 2004.

The FTC said it is investigating several spyware and adware companies and has clearly stated that distributors of bundled adware have to clearly and conspicuously disclose that advertising comes with the software and that consumers need to have a choice of what software is installed on their PCs.

Some adware companies have taken steps to change their behavior. Claria, a pioneer of pop-up ads, recently announced that it is beginning to phase out the much-derided format for ad delivery.

Also, in June, Intermix agreed to pay $7.5 million to settle charges filed by New York Attorney General Eliot Spitzer that it illegally distributed adware.