Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Alleged operator of tech support scheme settles FTC charges, (Nov 20, 2013)
Organizations Mentioned:Connexxions Infortech Inc. | ConnexxionsIT Services Private Limited | Conquest Audit | Direct PC Solution | First PC Solution | Global Innovative Services | PC Care247 Solutions Private Limited | PCCare247 Inc. | Virtual IT Supports | Virtual PC Solutions
By Linda O’Brien, J.D., LL.M.
The FTC has announced that one of the defendants in an alleged tech support scheme has agreed to settle FTC charges that he deceived consumers into paying for unnecessary technical support services (FTC v. PCCare247 Inc., FTC Files Nos. 122 3243 and X120057, Case No. 12 CIC 7189).
According to the FTC complaint, Navin Pasari and his co-defendants placed advertising with Google, which appeared when consumers searched for their computer business’ technology support telephone number. After the consumers were on the phone, the defendants’ telemarketers allegedly claimed to be affiliated with a major computer manufacturer or computer security company, such as Dell, Microsoft, McFee, and Norton. The telemarketers informed consumers that their computers were infected with malware which posed an imminent threat. The telemarketers then offered to rid the computer of the non-existent malware for a fee ranging from $139 to $360.
The stipulated final order imposes a $14,369 monetary judgment against Pasari, which represents the total amount of money he received in connection with the scheme. The final order also requires him to divest his ownership interest in PCCare247 Inc., another defendant in the complaint, and transfer any proceeds he receives from the divestiture to the FTC.
Additionally, the final order prohibits Pasari from opening or assisting with the opening of payment processing accounts for a company or entity unless he personally supervises the accounts. Pasari is also prohibited from misrepresenting or assisting other in misrepresenting any information to consumers.
The FTC vote approving the stipulated final order was 4-0. The federal district court in New York City entered the judgment on November 12, 2013. The FTC stated that, although the order resolves its claims against Pasari, litigation continues against the remaining defendants in this action.
Companies: PCCare247 Inc.; PC Care247 Solutions Private Limited; Connexxions Infortech Inc.; ConnexxionsIT Services Private Limited; Virtual PC Solutions; First PC Solution; Direct PC Solution; Virtual IT Supports; Global Innovative Services; Conquest Audit
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