Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Court pulls plug on allegedly bogus technical support company, (Oct 24, 2014)

By Greg Hammond, J.D.

New York-based Pairsys, Inc. has temporarily been shut down for purportedly scamming computer users into paying hundreds of dollars for unneeded technical support services. The federal district court in Albany, New York approved the stipulated preliminary injunction on October 9 (FTC v. Pairsys, Inc., File No. 142 3099, Case No. 1:14-cv-1192 TJM-CFH).

In its complaint, the FTC alleged that Pairsys representatives cold called consumers in the United States and elsewhere, falsely claiming that they were from well-known companies like Microsoft. The representatives would then trick consumers into thinking they had viruses, malware, or system corruption on their computers; gain remote access to their computers; and attempt to sell "security" and "technical support" services, costing consumers approximately $149 to $249, the complaint asserted. Consequently, the Commission filed suit, seeking a preliminary injunction and alleging that the company violated the FTC Act and Telemarketing Sales Rule (TSR) through deceptive marketing and representations.

"The defendants behind Pairsys targeted seniors and other vulnerable populations, preying on their lack of computer knowledge to sell ‘security’ software and programs that had no value at all," stated FTC Bureau of Consumer Protection Director Jessica Rich. "We are pleased that the court has shut down the company for now, and we look forward to getting consumers’ money back in their pockets."

Pairsys and its representatives are consequently prohibited from: (1) misrepresenting that they are from or calling on behalf of any company other than their own; (2) misrepresenting that security or performance issues have been detected on a computer; (3) making false or misleading statements to induce any person to pay for goods or services, in violation of the TSR; and (4) initiating an outbound telephone call to a telephone number within a given area code without first paying the annual fee for access to the telephone numbers within that area code. In addition, the company must ensure that the public can no longer gain access to their website, and must disconnect their telephone numbers. The court also placed an asset freeze on the company and its representatives, and ordered that the representatives provide the FTC with individual and business financial statements, as well as immediate access to the business premises and records.

Companies: Pairsys, Inc.

News: Advertising ConsumerProtection FederalTradeCommissionNews