Metrics direct steals our comissions

The Effect of 180solutions on Affiliate Commissions and Merchants
Benjamin Edelman – Spyware Research, Legislation, and Suits

[ Overview – Background – Methodology – 180’s Actions & Effects – Discussion – Response – Disclosures ]

Software from 180solutions (also known as MetricsDirect) redirects many affiliate commissions to 180. As a result, merchants pay commissions to 180 (and its advertiser partners) even when no commissions are payable under the terms and conditions of merchants’ affiliate programs, and even when commissions are properly payable to other affiliates. 180 causes these commissions to be paid via at least 84 different affiliate accounts, using multiple intermediary domain names that redirect affiliate tracking HTTP traffic, making 180’s activities particularly difficult to track and to prevent.

Overview & Summary

Some web sites (“merchants”) pay commissions to independent third-party web publishers (“affiliates”) who recommend and link to merchants’ products. Proper tabulation of affiliate commissions relies on a multi-step process, requiring coordination by merchants, affiliates, and (often) affiliate networks who help track the transactions. (Details about affiliate programs.) Software from 180solutions (also known as MetricsDirect) interferes with this tracking process, seizing affiliate commissions for 180’s benefit and for 180’s advertiser partners.

In my testing, 180 software specifically and systematically causes merchants’ tracking systems to conclude that users reached merchants’ sites thanks to 180’s efforts, even when users actually reached merchants on their own or through other affiliates. As a result, merchants pay commissions to 180 even when no commission is properly payable (under affiliate program rules), i.e. when users reach merchants’ sites without receiving bona fide recommendations from independent affiliate web sites. In addition, 180 causes merchants to pay commissions to 180 even when commission is properly payable to other affiliates — who actually recommended, encouraged, and facilitated users’ purchases from the merchants.

To seize affiliate commissions, software from 180 must first become installed on users’ PCs. See discussion in 180solutions Installation Methods and License Agreement.

Once installed on users’ PCs, 180 software performs four main functions:

180 transmits to its servers information about the web sites that users visit. Each transmission bears a domain name (or other trigger condition), as well as a unique user ID that lets 180 build profiles of users’ online activities. (details)
180 shows popup ads, which generally cover substantially all of the targeted web sites. In my testing, 180 typically covers web sites with the sites of their competitors. (details)
180 shows duplicate copies of merchants’ sites, where the second copy has been reached via an affiliate link. As a result, merchants pay commissions to 180 (and its advertisers) on the resulting purchases. (details)
180 opens hidden windows with invisible copies of merchants’ sites, where the invisible sites are reached via affiliate links. As a result, merchants pay commissions to 180 (and its advertisers) on the purchases of affected users. Since 180’s activities are silent and (to a user watching the computer’s screen) invisible, this behavior is particularly difficult to detect.
180’s activities have attracted attention from some targeted merchants, leading some merchants to remove 180 from their affiliate programs (details). (Nonetheless, at least 300 major online merchants remain affected. (details)) 180’s activities have also attracted attention from affiliates who are upset to lose commissions when 180 overwrites their tracking codes. (details)

To date the two largest affiliate networks (LinkShare and Commission Junction) have failed to remove from their networks all affiliates using 180solutions, despite behavior that seems to violate the networks’ rules. (details) In the short run, the affiliate networks benefit financially from 180’s activities — even as merchants, other affiliates, and users suffer. (details) Meanwhile, the next-largest affiliate network (Shareasale) has removed 180 from its network. (details)

For links to detailed info, go to the URL below:

http://www.benedelman.org/spyware/180-affiliates/