Effectivly its not illegal. Most spyware is installed either with applications or through browser addons (you know when it says "do you wish to install? Yes / No"

So the user is given a choice and thus it is hard to classify it as illegal.

And why shouldn't a business be based of spying. Private detectives are. And anyway spyware isn't really spyware, like I said most, tell you that they are installing themselves. If you tell somebody you are there, thats not spying.