Spyware in and of itself may not be illegal, but inadequate notice to users by distributors of such software may constitute deceptive advertising, Lydia Parnes, director of the Federal Trade Commission's Bureau of Consumer Protection, told a spyware conference in New York on Thursday, MediaPost reports. The comments came a day after a Senate committee held hearings on the matter.

Parnes said the FTC defined spyware as software installed without clear and conspicuous notice, and causing substantial harm to users. That definition could potentially include adware as well.

In fact, she termed Intermix's adware distribution practices a "textbook case" of deceptive advertising. "The New York Attorney General's office is to be congratulated," she said, referring to the AG Spitzer's suit against the firm.