FTC goes undercover to probe suspected antivirus scam, scores $26M settlement

FTC goes undercover to probe suspected antivirus scam, scores $26M settlement

March 14, 2024 at 04:31PM

Tech support businesses Restoro and Reimage have settled a $26 million case with the FTC, following accusations of running a Windows antivirus scam. The companies allegedly used scare tactics to coerce consumers into paying for unnecessary services, with the FTC conducting undercover purchases to gather evidence. Restoro and Reimage have ceased new transactions and automatic renewals as part of the settlement.

The meeting notes describe an undercover probe by the FTC that led to a $26 million settlement with Restoro and Reimage, two tech support businesses accused of deceiving consumers. The companies allegedly used scare tactics and lies to coerce consumers, particularly older individuals, into paying hundreds of dollars for unnecessary services. The FTC’s investigation involved undercover purchases of the companies’ services, revealing misleading practices and attempts to upsell additional repair services.

The companies have been charged with violations of the FTC Act and Telemarketing Sales Rule, and the director of Restoro and Reimage has signed off on the $26 million settlement without admitting fault. Both companies have agreed to halt new transactions and automatic renewals, yet their websites are currently displaying error messages.

It’s worth noting that the timeline of the companies’ decision to discontinue new transactions is unclear and further clarification is being sought from the consumer watchdog. Additionally, attempts to obtain clarification from Restoro and Reimage directly have been unsuccessful.

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