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This year two affiliate marketers primarily based in California, Shawn Hogan and Brian Dunning, pleaded guilty to defrauding eBay of at least $20 million in a scheme involving a notorious affiliate advertising and marketing tactic known as cookie stuffing." According to court documents, Mr. Hogan operated a network in which affiliates exchanged links and banner advertisements to assist drive traffic to each other's web sites. The sites also agreed to host advertisements controlled by Mr. Hogan's company, but in reality, these ads had been cookie-stuffing devices. Customers who viewed the advertisements had a modest tracking code, or cookie, dropped on their computer. If these customers went on to make a obtain from eBay, the cookie signaled that Mr. Hogan's company was accountable — and eBay paid a commission.

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