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At the FTC’s request, a massive international tech support scam has been
stopped. According to the complaint, callers pretending to work for
well-known companies like Dell, Microsoft, McAfee, and Norton told people that viruses and spyware had been detected on their
computers, and used common routine warning messages on the computers as “proof.”
Tens of thousands of users were tricked into believing their computers were
riddled with malware, and paid scammers hundreds of dollars to “fix” the problem. Listen to an undercover buy between a scammer and an FTC investigator, and read Tech Support Scams for more.
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Seven rent-to-own
companies and a software design
firm have agreed to
settle FTC charges that they spied
on people in the privacy of their own homes. The FTC’s complaint said DesignerWare
LLC licensed software to rent-to-own
stores to help them track and recover rented computers. But the
software’s “Detective Mode” did even more: It gave stores the ability to log
keystrokes, grab screen shots full of personal information, and take webcam photos of
people in their homes. The
company and stores now are banned from using monitoring software like Detective
Mode, or using deceptive tactics to get information from their customers.
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Credit
reporting company Equifax has agreed to settle FTC charges that it illegally sold the names of millions of
people who were late on their mortgage payments. According to the FTC, Equifax
sold lists of names to companies,
including Direct Lending Source, Inc., which resold the lists. Those “third
parties” used the lists to pitch loan modification and debt relief services to
people, the FTC says. Under the Fair Credit Reporting Act, companies
can buy prescreened lists only to make “firm offers of credit or insurance”—
not for general marketing. Equifax and the companies that
bought and resold the information will pay a total of $1.6 million.
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Artist
Arena, operator of fan websites for Justin Bieber, Rihanna, Demi Lovato, and Selena
Gomez, among other celebs, will pay $1 million to settle FTC
charges that it violated the Children’s Online
Privacy Protection Act (COPPA) by illegally collecting information from fans
under 13 without their parents’ okay. Despite saying it wouldn’t, Artist Arena allegedly
collected names, addresses, email addresses, and birthdates without permission,
and kids were able to register to join a fan club, create profiles, and post on
members’ walls. According to the FTC, the company knowingly registered more
than 25,000 kids under 13 and collected personal information from almost 75,000
more.
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At the FTC’s request, the Supreme
Court will review a merger between two competing hospitals in Albany, Georgia —
a merger the FTC says created a monopoly, reducing competition and leading to
higher health care prices in the area. After seeking to block the transaction
in April 2011, the FTC is asking the Court to reverse a lower court ruling that
the local Hospital Authority can shield the anticompetitive merger from federal
antitrust scrutiny under the “state action doctrine.” At stake is the FTC’s
ability to prevent harmful mergers in which private parties create an
unsupervised monopoly. The Court will hear arguments in November.
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"The introduction of
environmentally friendly products into the marketplace is a win for consumers who want to purchase greener
products and producers who want to sell them. But this win-win can only
occur if marketers’ claims are truthful and substantiated. The FTC’s
changes to the Green Guides will level the playing field for honest business
people and it is one reason why we had such broad support."
- Jon Leibowitz, FTC
Chairman
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Want to buy products
that are better for the environment? Then you might be interested to know about
the FTC’s revised “Green Guides” for business. The Green Guides
explain the standards for truth in green advertising, making sure companies that
want to make claims about the
“green” attributes of their packages and products know they need to have the
science to back the claims up. What does that mean for you? Read Shopping
“Green” at ftc.gov/green for more.
Two free online placement services for seniors looking for assisted living
and long-term care facilities have agreed to
settle FTC charges that they misled people, making them think they had up-to-date
research and detailed knowledge about facilities. According to complaints, there
are at least 39,000 assisted living
facilities and
thousands of smaller residential care homes in the U.S.
The operators of
a Philadelphia-based telemarketing scheme that allegedly sold bogus “platinum credit
cards”
to payday loan applicants and illegally debited people’s bank accounts will pay $7.5 million to settle FTC charges. According to the FTC, the
cards could only be used to buy off-brand, overpriced products at the
defendants’ online store.
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IN OTHER NEWS:
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SHARE THIS:
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FTC staff will
live-tweet its Oct. 18th Robocall Summit (@FTC). Want to tweet
a question? Here’s what to know: http://go.usa.gov/YNHB
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Know
how to protect your computer and other mobile devices from malware? A new FTC video explains what to know and do: http://go.usa.gov/YNHQ
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Is
someone you know planning to enter the Diversity Visa Lottery? A new video explains how to avoid visa lottery scams: http://go.usa.gov/YNHw
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