Originally, it looked like Intermix thought it could fight back against the charges from Eliot Spitzer by pretending that he was claiming they did something different than he actually accused them of doing. They said they weren't "spyware" because their app didn't do any "spying." Of course, that's not what they were charged with. They were charged with doing a surreptitious install with their toolbars, annoying lots of people who didn't want pop up ads from Intermix and never agreed to them. It looks like Intermix realized that a court of law wouldn't buy their weak attempt at misdirection and has agreed to settle the case, paying out a few million dollars and promising to stop distributing adware and to "redirect" all existing ad programs (though, they don't say to where). Of course, without the sneaky adware installs, it's not at all clear how the company intends to make money.
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