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FTC And PC Rental Companies Settle In Spying On Users Case

Posted by Unknown on from the just-when-ubuntu-was-about-to-sign-up dept.

SternisheFan writes with news of a settlement in a case of Rent-to-Own firms grossly violating the privacy of their customers. From the article: "Seven rent-to-own companies and a software developer have settled federal charges that they spied on customers, ... The companies captured screenshots of confidential and personal information, logged keystrokes, and took webcam pictures of people in their homes. Their aim was to track the computers belonging to customers who were behind with their payments. 'An agreement to rent a computer doesn't give a company license to access consumers' private emails, bank account information, and medical records, or, even worse, webcam photos of people in the privacy of their own homes,' says FTC chairman Jon Leibowitz. 'The FTC orders today will put an end to their cyber spying.' Developer DesignerWare produced the software that was used to gather the information, PC Rental Agent. The package included a 'kill switch' designed to disable a computer of it was stolen, or if payments weren't made. However, an add-on program called Detective Mode could log key strokes, capture screen shots and take photographs using a computer's webcam, says the FTC in its complaint (PDF)."

2 of 80 comments (clear)

  1. They probably just had good lawyers by adosch · · Score: 3, Interesting

    I've never personally used a rent-to-own service, but I can't imagine it's much fun when your marketed crowd is people who can't afford things outright, then specifically deadbeats who have zero intention of ever buying it and will go to great lengths to try and keep your merchandise.

    But there's some shady about this whole story that just doesn't make a lot of sense. Why on earth would a rent-to-own company have a whole development team designing all this for them? I think there was a bit of wrongful intent on the company to want to try and steal some PII; maybe not use it themselves, but sell that information, sure.

    Now being tied up with a legal battle, it's now easy for their lawyers to pull out the scapegoat that it was all about protecting their investment and assets. As much as I buy that, that's what the repo-man makes a living for. And if you're losing that many computer assets of non-payment or delinquency, then start selling bottom-line PCs and bring some pimple-faced Best Buy let-go in to oversell and dramatize the hell out of them for you. Or better yet, just stop selling them altogether.

  2. Re:lengths companies go to by fuzzyfuzzyfungus · · Score: 5, Interesting

    Well it just goes to show the lengths some companies will go to in the persuit of profit.

    Worse, it demonstrates the incredible toothlessness of the penalties for doing so, as long as you do it correctly(the fact that the victims of sleazy rent-to-own places aren't exactly people who matter or are likely to lawyer up very effectively)...

    I suspect that there's a reason why societies that frown on and/or execute usurers have historically been so common.