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Showing posts with label Antitrust Lawsuit. Show all posts

Fraudulent Antivirus Software Faces FTC Lawsuit After Raking in Millions

 

The US Federal Trade Commission filed a lawsuit alleging that two antivirus software packages, Restoro and Reimage, are counterfeit goods that have defrauded customers out of "ten of millions" of dollars. 

FTC investigators apparently went undercover and purchased the alleged malicious software four times. They discovered that the software consistently lied, telling them that they had a slew of viruses and security issues on their machines when, in fact, they did not. 404Media and Court Watch were the first to report the news.

One Restoro scan reported to the FTC that their test PC had 522 vulnerabilities that needed to be repaired. A Reimage scan discovered 1,244 so-called "issues," which the software classified as "PC privacy issues," "junk files," "crashed programs," and "broken registry issues." According to the complaint, these flaws were part of a larger scheme to offer buyers fraudulent "repair" tools. 

After installation, the software prompted the user to call a phone number to "activate" the software. However, the FTC claims that this is also part of the scheme, as the phone call sends users to a person who attempts to upsell the customer on further computer "repair services" over the phone, the lawsuit alleges. 

The FTC claims that the two software programs, which originate from the same place in Cyprus, have successfully tricked clients out of "tens of millions" of dollars. Reimage was added to a risk-monitoring program in 2019 because so many customers used credit card chargebacks to demand refunds. A large number of people also complained online, claiming the products are a scam.

According to the lawsuit, Visa also claimed in 2020 that the developers of the programme were involved in "fraudulent activities." Due to the large volume of customer chargeback requests, Visa later placed one of the Restoro-affiliated companies on a watch list in 2021. 

Restoro and Reimage are now facing charges from the FTC for allegedly misrepresenting their products and breaking laws pertaining to US telemarketing. Concerning the possibility that the developers of Restoro and Reimage will "continue to injure consumers and harm the public interest" in the absence of action, it expresses concern that the threat actors behind it won't stop.

U.S. Targets Google's Online Ad Business in Latest Lawsuit



The US Department of Justice (DOJ), along with eight other US states have filed a lawsuit against tech-giant Google. DOJ, on Tuesday, accused Google of abusing its dominance in the digital ad market. 

It has threatened to dismantle a significant business at the heart of one of Silicon Valley’s most successful online organizations. 

According to US Attorney General Merrick Garland, its anti-competitive practices have "weakened, if not destroyed, competition in the ad tech industry." 

The government campaigned for forcing Google to sell its ad manager suite, a business that not only contributed significantly to the search engine and cloud company's overall sales but also contributed around 12% of Google's revenue in 2021. 

"Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies," the antitrust complaint read. Google charged that the DOJ was "doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow." 

The federal government says that it's Big Tech investigations and lawsuits that are aiming at leveling the playing field for smaller rivals to a group of powerful companies, including Amazon, Facebook owner Meta and Apple Inc. 

"By suing Google for monopolizing advertising technology, the DOJ today aims at the heart of the internet giant’s power[…]The complaint lays out the many anticompetitive strategies from Google that have held our internet ecosystem back," says Charlotte Slaiman, competition policy director at Public Knowledge. 

The Current Lawsuit Follows an Antitrust Lawsuit from 2020 

Tuesday’s lawsuit, under the administration of President Joe Biden, follows a 2020 antitrust case filed against Google during the presidency of Donald Trump. 

The 2020 lawsuit alleged antitrust violations in the company's acquisition or maintenance of its monopoly in internet search and is scheduled to go to trial in September. 

Eight States in Lawsuit 

The nearly 15-page lawsuit accuses Google of breaches of US antitrust law and attempts to "halt Google's anti-competitive scheme, unwind Google's monopolistic grip on the market, and restore competition to digital advertising". 

If the courts proceed to side with the US government, this might lead to the dissolution of the firm’s advertising business. 

The states joining Tuesday’s lawsuit include Connecticut, Colorado, New Jersey, New York, Rhode Island, Tennessee, and Virginia, along with Google’s home state California.