L.L.Bean has entered into settlement agreements with Gevalia Kaffe and Atkins Nutrionals to settle allegations that they illegally served pop-up advertisements on the llbean.com web site. On May 17, 2004, L.L.Bean filed suit against four companies — Nordstrom, J.C. Penney, Atkins and Gevalia — that were known to have traded on the L.L.Bean name through their use of “spyware” enabled pop-up ad technology.
With this settlement, Gevalia joins Atkins Nutritionals in consent decrees that prohibit both companies from authorizing advertisements for its products on the L.L.Bean web site. The Atkins Nutrionals and Gevalia settlements, approved by the U.S. District Court in Maine on May 24 and June 21, 2004 respectively, also include an undisclosed payment of damages to L.L.Bean, and instructions to “take all necessary actions to halt such advertisements, including such actions as may be directed by the court pursuant to its continuing jurisdiction.”
In contrast to Atkins and Gevalia, Nordstrom and JC Penney have opted to litigate the L.L.Bean case. “Both Atkins and Gevalia took immediate action to resolve our complaint without further litigation,” says Mary Lou Kelley, L.L.Bean's Vice President of E-Commerce. “This is good news for L.L.Bean and countless consumers who are fed up with spyware-enabled advertising practices that invade personal computers and the privacy of their families. We can't see why any reputable retailer would choose to litigate in defense of a practice that compromises consumer trust and confidence.”
“This is a consumer trust issue, plain and simple,” adds Chris McCormick, L.L.Bean's President and CEO. “We don't enjoy going to these lengths, but as this kind of activity becomes more pervasive, it threatens 90 plus years of commitment to building trust, reliability, and peace of mind into our retail brand. L.L.Bean is not the only company with so much at stake here, and this development demonstrates that other retailers are coming to the same conclusion. Consumers who are concerned about privacy and the future of the internet as a place to safely transact with reputable retailers should be pleased to hear that Atkins and Gevalia acted so quickly.”
