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DirectRevenue Settles Class Action, to Pay $300,000

Spyware/adware firm DirectRevenue is in the process of reaching a final agreement on landmark terms to settle a March 2005 class action suit brought against it, writes Jeff Molander at ThoughtShapers.com. The case of Sotelo v. Direct Revenue Friday received the preliminary approval of Federal Judge Virginia Kendall of the Northern District of Illinois in Chicago. The company and class representative Stephen Sotelo have apparently agreed that DirectRevenue will destroy any personally identifiable information that it may possess. According to DirectRevenue's announcement, it will also pay $300,000 in attorneys' fees and costs.

Furthermore, it must disclose that users will receive online ads, describe the types of ads, and explain that it will collect information about sites visited. DirectRevenue will also, among other terms of settlement, henceforth provide equal prominence to its end-user license agreement (EULA) choices: "I have read and accept the agreement" and "I do not accept the terms of the agreement." The "accept" option will not be the default.

Further details on the 12 settlement terms are contained in the ThoughtShapers post.

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