This is not the first time Bonzi Software has been the subject of scrutiny. The firm has run afoul of many privacy advocates, who say the Bonzi Buddy software tracks users’ Internet travels.

According to Web researcher Nielsen NetRatings, Bonzi is the No. 1 software advertiser on the Internet, delivering an estimated 743.5 million ad impressions to visitors in the month of October.

The suit, filed in November 2002, charged the San Luis Obispo, Calif.-based software company with deceiving millions of Web surfers into clicking on its banner ads by presenting them as computer ...

According to Web researcher Nielsen NetRatings, Bonzi is the No. 1 software advertiser on the Internet, delivering an estimated 743.5 million ad impressions to visitors in the month of October.

Darrell Scott of Lukins & Annis, a Spokane law firm, sued Bonzi Software Inc. of San Luis Obispo, Calif., in November alleging the company's pop-up ads were deceptive.

Bonzi Software Inc. has agreed to label as "advertisement" its Internet pop-up ads that impersonate computer error messages, according to an attorney who had sued the advertiser.

Bonzi Software settled a class-action suit Monday in the Superior Court of Spokane, Wash., agreeing to clearly label advertisements that appear to be computer error messages.