Two tech support companies, Restoro Cyprus and Reimage Cyprus, will pay $26m to settle charges by the US Federal Trade Commission (FTC).
The FTC alleges that these companies deceived consumers into purchasing computer repair services through deceptive marketing tactics.
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Consumers were targeted with fake Microsoft Windows pop-ups claiming their computers were infected with viruses, regardless of actual computer health.
The so-called scans conducted by the companies typically identified supposed serious issues, prompting consumers to purchase software priced between $27 and $58.
After purchasing the software, consumers were urged to call a number to activate it, and telemarketers then attempted to upsell additional services, misrepresenting routine computer errors as signs of malware.
The proposed order requires the companies to pay $26m for consumer redress and prohibits them from misrepresenting security or performance issues, engaging in deceptive telemarketing or making other material misrepresentations.
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By GlobalDataThe FTC emphasises its role in promoting competition, protecting consumers and educating them about fraud and scams.
Earlier this month, the FTC presented a case in favour of Colorado’s proposed expansion of right-to-repair laws.
The proposed legislation aims to extend repair rights to digital electronic equipment and specifically targets the contentious practice of parts pairing.
Parts pairing, a practice where manufacturers insist on approval before replacement parts can be integrated into a device, has received major criticism from government bodies.
