The Google-sponsored Stopbadware project has lashed out against the free version of AOL's software. 

"We currently recommend that users do not install the version of AOL software that we tested, unless the user is comfortable with the level of risk we identify or until the application is updated," the project stated on its website. 

Stopbadware.org launched an investigation into the application because it behaves like malware.

Although the software does not comprise user security or steal data, it fails to disclose that it installs additional applications and adds a toolbar to Internet Explorer.

The application will not fully uninstall when a user tries to remove it, and updates without the user's permission. The status of the Stopbadware inquiry is marked as 'open'.

Stopbadware was launched in January. Headed up by the universities of Oxford and Harvard, the project targets the current wave of 'badware' by naming and shaming companies that develop and use adware, spyware and other malicious code. 

The project is funded by Google, Lenovo and Sun Microsystems. 

AOL is reportedly planning to change its software in a new release next month. The company unveiled a free version of its online services earlier this month in an attempt to increase its advertising revenues.

The badware label could have dire consequences. Google recently started warning its users about websites placed on the service's black lists when they turn up in search results.