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Washington AG settles deceptive practices allegations with office supply company

State Issues State Attorney General Deceptive FTC Enforcement Consumer Protection Settlement

State Issues

On November 13, the Washington attorney general announced an office supply company has agreed to pay $900,000 to resolve an investigation into deceptive computer repair services. According to the AG’s office, the company allegedly used a software program, called “PC Health Check” or similar names, to facilitate the sale of diagnostic and repair services to retail customers that cost up to $200, regardless of whether their computer was actually infected with viruses or malware. The company claimed that the program, which allegedly detected malware symptoms on consumers’ computers, actually based the results on answers to four questions consumers were asked by a company employee at the beginning of the service, including whether the computer had slowed down, had issues with frequent pop-up ads, received virus warnings, or crashed often. After the questions were asked, the responses were entered into the program and a simple scan of the computer was run. The AG’s office claims that the scan had no connection to the malware symptoms results because an affirmative answer by the consumer to any of the four questions always led to the report of actual or potential malware symptoms. The release also states that in 2012, a company employee informed management that “the software reported malware symptoms on a computer that ‘didn’t have anything wrong with it,’” but that the company continued to sell the repair services until 2016 to an estimated 14,000 Washington consumers. According to the AG’s release, Washington is the only state to reach an agreement with the company over the alleged practices in addition to the $35 million national settlement the company and its software vendor reached with the FTC in March for similar conduct. (Previous InfoBytes coverage here.)

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