Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC, Florida announce settlements with ‘tech support’ services marketers, (Feb 12, 2016)

By Jeffrey May, J.D.

Six Florida-based defendants named in a 2014 complaint brought by the FTC and the State of Florida have agreed to settle allegations that they participated in a “tech support" scheme. Four separate settlements have been filed in the federal district court in Florida resolving claims against Boost Software, Inc. and its principal Amit Mehta, as well as two individuals connected with telemarketing operation Vast Tech Support, LLC and two related companies (FTC v. Boost Software, Inc., FTC File No. 132 3283, X150040, Civil Action No. 14-cv-81397 (klr)).

The FTC and Florida alleged that the defendants used software designed to trick consumers into thinking there were security or performance issues with their computers, then subjected those consumers to high-pressure deceptive sales pitches for tech support products and services to fix their non-existent computer problems. At that time, the court issued a temporary restraining order.

The settlement orders include several provisions barring future misconduct by the defendants and judgments against the defendants totaling more than $37 million, which will be suspended after they pay a total of approximately $236,000 and surrender the corporate assets, the FTC announced. One settlement bans Success Capital, LLC and Elliot Loewenstern from the tech support industry, and other orders prohibit Mehta, Boost Software, Jon Paul Holdings, LLC, and Jon-Paul Vasta from misrepresenting that they have identified problems on consumers’ computers. Mehta and Boost Software also are prohibited from upselling or selling leads related to tech support. In addition, Vasta and Jon Paul Holdings are permanently restrained from misrepresenting any acts that violate Florida Deceptive and Unfair Trade Practices Act, including using any false or misleading statement to induce a person to pay for any goods or services, according to an announcement from the State of Florida.

Litigation continues against co-defendants Mark Donohue, Vast Tech Support, LLC, and OMG Tech Support, LLC.

Attorneys: Russell Deitch and J. Ronald Brooke, Jr. for FTC. Patricia A. Conners, Deputy Attorney General, for State of Florida. Alexander Angueira (Alexander Angueira, P.L.L.C.) for Boost Software, Inc.

Companies: Boost Software, Inc.; Vast Tech Support, LLC; Success Capital, LLC; Jon Paul Holdings, LLC; OMG Tech Support, LLC.

News: ConsumerProtection StateUnfairTradePractices FederalTradeCommissionNews