Daily Newsletter

01 January 1970

Daily Newsletter

01 January 1970

FTC orders tech support companies to pay $26m for deceiving consumers

The two tech support companies are accused of targeting users with fake Microsoft Windows pop-ups claiming their computers were infected with viruses.

Sarah Brady March 15 2024

Two tech support companies, Restoro Cyprus and Reimage Cyprus, will pay $26m to settle charges by the US Federal Trade Commission (FTC).

The FTC alleges that these companies deceived consumers into purchasing computer repair services through deceptive marketing tactics.

Consumers were targeted with fake Microsoft Windows pop-ups claiming their computers were infected with viruses, regardless of actual computer health.

The so-called scans conducted by the companies typically identified supposed serious issues, prompting consumers to purchase software priced between $27 and $58.

After purchasing the software, consumers were urged to call a number to activate it, and telemarketers then attempted to upsell additional services, misrepresenting routine computer errors as signs of malware.

The proposed order requires the companies to pay $26m for consumer redress and prohibits them from misrepresenting security or performance issues, engaging in deceptive telemarketing or making other material misrepresentations.

The FTC emphasises its role in promoting competition, protecting consumers and educating them about fraud and scams.

Earlier this month, the FTC presented a case in favour of Colorado’s proposed expansion of right-to-repair laws.

The proposed legislation aims to extend repair rights to digital electronic equipment and specifically targets the contentious practice of parts pairing.

Parts pairing, a practice where manufacturers insist on approval before replacement parts can be integrated into a device, has received major criticism from government bodies.

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