The browser industry has been half waiting half dreading the release of the next Internet Explorer, IE7. Either way, Microsoft continues to release more information about the upcoming release which promises to add significant improvements to the web-experience but which may also put Microsoft on shaky ground.

The most recently announced feature for IE7 will be an “antiphishing” monitoring and alert system (also to be available to IE6 via a plug-in). This new version of IE will interrupt and warn a user when they try to go to a site that is known to deceptively try and grab personal information. On sites that are not known scam sites but where server/software behavior look questionable, users will see a warning.

In theory, this new technology / feature sounds very appealing. However, what will be used to identify sites as “scam” site or questionable behavior? What happens if warning or “scam” interruptions come up on legitimate sites? Will site owners have a way to appeal this message / practice?

How big a problem this may be will depend on the software released and the appeals process if there is one. Large company sites like Best Buy, Amazon and Wal-Mart will undoubtingly work but often legitimate small to mid-sized companies feel the impact of technology changes like this.

As an example, Zone Labs’ firewall ZoneAlarm is a great product and the free firewall has been a lifesaver for many users. However, the default settings for the pay version of the software, which most users keep, has been known to reek havoc on the shopping cart software of many small to mid-sized companies web stores.

In the case of the problem with ZoneAlarm, and a few other common firewalls, users simply cannot use a site’s shopping cart. In the case of a false positive for a scam site, the warning and/or interruption goes a step farther into the realm of “liable”. Microsoft has a fleet of lawyers, so they are certain to make sure they are covered at least legally, but we hope that this smaller companies are not stigmatized simply for not using the latest toolset that a multi-million dollar retailer has.