Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC Approves Final Consent Orders with Software Company, Seven Rent-to-Own Stores over Alleged Spying on Consumers, (Apr 15, 2013)
Organizations Mentioned:Aspen Way Enterprises Inc. | B. Stamper Enterprises Inc. | C.A.L.M. Ventures | DesignerWare, LLC | J.A.G. Rents LLC | Red Zone Investment Group Inc. | Showplace Inc. | Watershed Development Corp.
The FTC has approved final consent orders settling FTC charges that seven rent-to-own companies and a software design firm that licensed software to rent-to-own stores to help them track and recover rented computers engaged in unfair practices in violation of the FTC Act, the agency has announced (FTC File No. 112-3151).
The companies allegedly spied on consumers using computers that consumers rented from them, capturing screenshots of confidential and personal information, logging their computer keystrokes, and in some cases taking webcam pictures of people in their homes, all without notice to, or consent from, the consumers. The software design firm collected the data that enabled rent-to-own stores to track the location of rented computers without consumers’ knowledge, according to the FTC complaint announced last September.
The consent orders bar the companies from any further illegal spying, from activating location-tracking software without the consent of computer renters and notice to computer users, and from deceptively collecting and disclosing information about consumers. They also prohibit the use of geolocation tracking without consumer consent and notice, and bar the use of fake software registration screens to collect personal information from consumers. In addition, the software design firm is barred from providing others with the means to commit illegal acts, and the seven rent-to-own stores are prohibited from using information improperly gathered from consumers in connection with debt collection. All settlement orders contain provisions requiring the companies to maintain records for 20 years to permit the FTC to monitor compliance.
The orders settle claims against DesignerWare, LLC; Timothy Kelly and Ronald P. Koller; Aspen Way Enterprises Inc.; Watershed Development Corp., doing business as Watershed and Aaron’s Sales & Lease Ownership; Showplace Inc., doing business as Showplace Rent-to-Own; J.A.G. Rents LLC, doing business as ColorTyme; Red Zone Investment Group Inc., doing business as ColorTyme; B. Stamper Enterprises Inc., doing business as Premier Rental Purchase; and C.A.L.M. Ventures, doing business as Premier Rental Purchase.
Companies: DesignerWare, LLC; Aspen Way Enterprises Inc.; Watershed Development Corp.; Showplace Inc.; J.A.G. Rents LLC; Red Zone Investment Group Inc.; B. Stamper Enterprises Inc.; C.A.L.M. Ventures
News: Privacy ConsumerProtection FederalTradeCommissionNews