@Terri218
In short, it is another form of Adware as it is similar to Google AdSense, except it displays advertisements in installation programs instead of websites.
According to Wikipedia, OpenCandy is a company based in San Diego which produces a Web 2.0 advertising software module. It is a Microsoft Windows library which can be incorporated in a Windows installer.
When a user installs an application which has the OpenCandy library, they are presented with the option to install additional software that it recommends (based on a scan of the user's system and geolocation).
It has attracted some criticism due to privacy concerns.
Past versions of OpenCandy were considered adware by Microsoft Security Essentials as they 'may send user-specific information...without obtaining adequate user consent'.
http://en.wikipedia.org/wiki/OpenCandy
You might also look at these links to understand more:
http://winscp.net/eng/docs/opencandy
http://www.opencandy.com/faqs/
Hope this helps you
Paul