Saturday, May 30, 2020

FTC Settles with Operators of Tech Support Scams

Must read

Tune to Merge with Cake Software in Major Purchase

Publicly-traded Toronto-based company Constellation Software has announced the acquisition of Seattle SaaS company Tune. Founded 11 years ago, Tune...

Why You Must Have Affiliate Program Audits

Whether you’ve been running an affiliate program for 10 years, or 10 months, regular auditing is an essential aspect of maintaining a successful affiliate...

Payment Processor and Executive to Pay Millions to Settle FTC Allegations of Assisting in Fraudulent Schemes and Credit Card Laundering

According to the Federal Trade Commission, one of the world’s leading payment processing companies and its former executive will pay more than...

Feds Go After Israeli Crypto Marketing Scam

Tal Valariola and Itay Barak of Digital Platinum Limited for aiding the United States-based firm All In Publishing Charged.
Avatar
Richard B. Newmanhttp://www.hinchnewman.com
Richard B. Newman is an Internet Lawyer at Hinch Newman LLP focusing on advertising law, Internet marketing compliance, regulatory defense and digital media matters. His practice involves conducting legal compliance reviews of advertising campaigns across all media channels, regularly representing clients in high-profile investigative proceedings and enforcement actions brought by the Federal Trade Commission and state attorneys general throughout the country, advertising and marketing litigation, advising on email and telemarketing best practice protocol implementation, counseling on eCommerce guidelines and promotional marketing programs, and negotiating and drafting legal agreements.

The FTC has announced that the operators of two alleged tech support scams have agreed to settle agency charges that they deceived consumers into believing their computers were infected with viruses and malware, and then charged them hundreds of dollars for unnecessary repairs.

As set forth in the complaints, the defendants allegedly contacted consumers through phone calls or displayed advertisements on their computers designed to resemble pop-up security alerts from Microsoft, Apple or other technology companies. These ads purportedly warned consumers that their computers were infected with viruses, had been hacked, or otherwise compromised, and urged them to immediately call a toll-free number for assistance.

Once consumers called the toll-free number listed on the ads, they were connected to a call center and allegedly pitched by telemarketers who claimed to be affiliated with well-known technology companies such as Microsoft. Consumers were also allegedly informed that in order to diagnose the problem, they had to provide the telemarketers with remote access to their computers.

After gaining access to consumers’ computers, the telemarketers allegedly ran a series of “diagnostic tests” that claimed to show that their computers had major problems requiring immediate repair by one of their “certified technicians.”

Through these high-pressure tactics, as alleged by the Commission, the defendants persuaded consumers to pay hundreds of dollars for unnecessary computer repair services, service plans, anti-virus protection or software, and other products and services. In some cases, the defendants purportedly installed malware on consumers’ computers.

The defendants are permanently banned from advertising, marketing, promoting or selling any tech support product or service under the terms of the settlements (or assisting others to do so). They are also prohibited from collecting or attempting to collect payment for a tech support product or service sold by the defendants, from deceptive telemarketing and misrepresenting their affiliation with another company or entity.

See here for more information on the settlements.

The FTC is showing no signs whatsoever of slowing down when it comes to enforcing the FTC Act. Contact an experienced FTC compliance and defense advocate if your company is the subject of a regulatory investigation or has been named in an enforcement action.

Follow the author on Twitter @FTCLawDefense.

 

ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35thFloor, New York, NY 10005 | (212) 756-8777

- Advertisement -

More articles

What's your opinion?

- Advertisement -

Latest article

Tune to Merge with Cake Software in Major Purchase

Publicly-traded Toronto-based company Constellation Software has announced the acquisition of Seattle SaaS company Tune. Founded 11 years ago, Tune...

Why You Must Have Affiliate Program Audits

Whether you’ve been running an affiliate program for 10 years, or 10 months, regular auditing is an essential aspect of maintaining a successful affiliate...

Payment Processor and Executive to Pay Millions to Settle FTC Allegations of Assisting in Fraudulent Schemes and Credit Card Laundering

According to the Federal Trade Commission, one of the world’s leading payment processing companies and its former executive will pay more than...

Feds Go After Israeli Crypto Marketing Scam

Tal Valariola and Itay Barak of Digital Platinum Limited for aiding the United States-based firm All In Publishing Charged.

How to Win Affiliate Marketing During Covid19

As Covid-19 disrupts “business as usual” and impacts consumer behavior around the world, companies of all shapes and sizes are discovering they...