It seems that Gator isn't alone in pissing off companies by putting popups of competitors over certain sites. U-Haul and 1-800 Contacts both have decided to sue some company named Where-U that places additional pop ups on their sites, that link to competitors of U-Haul and 1-800 Contacts. While I think any spyware company that uses pop-ups deserves to be sued just for being annoying, I'm not convinced that what they're doing is actually illegal.
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