Movement is afoot to pass federal legislation against spyware, with senate hearings showing some momentum toward passing a bill this year. One of the lead senators in a recent hearing listed five principles that need to be upheld in legislation, one of which - certain to be of great concern to online ad executives - was a requirement that user information should not trail from site to site. This seems to run afoul of other spyware legislation concerns that such limitations would throw out the ad tracking baby with the spyware bathwater.

The other big issue of concern to online ad executives has been whether or not advertisers or ad networks should be held responsible for the use of improper marketing methods by their affiliates and contributors. This year's legislation is unlikely to tackle that problem, effectively leaving interpretation up to the courts.

Two Republican senators introduced one bill that was notable for its severe penalties for those found guilty of spyware offenses. Interestingly, the penalties work in a similar fashion to drug laws, where profits and equipment seized from spyware firms would be employed in the enforcement of anti-spyware laws. One of the main impediments to spam, spyware and other sorts of enforcement has been the lack of funding or motivation for prosecutors to bother pursuing these offenses. MarketWatch reports.