Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Tech support scammers must pay $5.1M for FTC Act violations, (Jul 24, 2014)

By Greg Hammond, J.D.

The federal district court in New York City has entered default judgment against 14 corporations and 14 individuals connected with Internet tech support scams. The various companies and individuals are required to pay over $5.1 million for engaging in unfair and deceptive commercial practices in violation of the FTC Act.

According to the FTC, the various corporations and individuals posed as notable companies, such as Dell, McAfee, Microsoft, and Norton; fooled consumers into believing their computers contained malware that presented an imminent threat; and ultimately bilked consumers out of hundreds of dollars to remotely access and “fix” their computers. The scams targeted English-speaking consumers in the U.S. and elsewhere, and the operations were primarily based in India.

In addition to monetary judgments, the defendants are effectively banned from: (1) marketing any computer security-related technical support service; (2) continuing their deceptive practices; and (3) disclosing, selling, or failing to dispose of information they received from victims. The defendants are also required to submit compliance reports and maintain their records for a period of five years for FTC inspection.

The Commission filed the complaints against the various companies and individuals in September 2012, as part of an effort to crack down on tech support scammers. Complaints in this case were filed against: PCCare247 Inc. (FTC v.PCCare247 Inc., File No. 122 3243 and X120057, Case No. 12 CIV 7189), Mikael Marczak (FTC v. Marczak, File No. 1223246, Case No. 12 CIV 7192), Zeal IT Solutions Pvt. Ltd. (FTC v. Zeal IT Solutions Pvt Ltd., File No. 1223244, Case No. 12 CIV 7188), Lakshmi Infosoul Services Pvt. Ltd. (FTC v. Lakshmi Infosoul Services Pvt Ltd., File No. 1223245, Case No. 12 CIV 7191), Pecon Software Ltd. (FTC v. Pecon Software Ltd., File No. 1123118, Case No. 12 CIV 7186), and Finmaestros, LLC (FTC v. Finmaestros, LLC, File No. 1223247, Case No. 12 CIV 7195).

Previously, a total of four defendants—two from the PCCare247 case and two from the Marczak case—have agreed to settle the FTC’s unfair and deceptive practices charges and give up ill-gotten gains, the agency reported. The default judgments consequently pertain to the remaining defendants in each of the six tech support scam cases.

Companies: Pecon Software Ltd.; PCCare247 Inc.; Finmaestros, LLC; Lakshmi Infosoul Services Pvt. Ltd.; and Zeal IT Solutions Pvt. Ltd.

News: ConsumerProtection FederalTradeCommissionNews