FTC cracks down on firms in cyber spying

From: Associated Press

Washington — A software program developed to track the  locations of rented computers secretly collected confidential and personal  information about consumers, including medical records, bank statements and even  webcam pictures of couples engaged in sex, the Federal  Trade Commission said in a settlement that bars eight companies from any  further cyber spying.

The case involved seven rental companies and a firm called DesignerWare  LLC of North East, Pa., which licensed its PC  Rental Agent software to stores so they could shut off and recover computers  that hadn’t been returned in time or had been stolen.

But the software could do much more than that, the commission said. When an  add-on program known as Detective Mode was activated, the software could capture  computer screen shots, furtively take photos using the computer’s webcam, log  key strokes and trick consumers into providing personal contact information, the  FTC said.

Detective Mode could gather data every two minutes that a computer is  connected to the Internet until the program is directed to stop. The information  would then be forwarded from DesignerWare’s servers to the rental store that  activated the program, according to the FTC.

“In numerous instances, Detective Mode webcam activations have taken pictures  of children, individuals not fully clothed, and couples engaged in sexual  activities,” the FTC said in the complaint, released Tuesday.

The individuals and companies named in the FTC’s complaint are DesignerWare;  Aspen Way Enterprises Inc. of Billings, Mont., a franchisee of Aaron’s Inc.; Watershed  Development Corp. of Lake Bluff, Ill., an Aaron’s franchisee; Showplace Inc.  of Marion, Ohio; J.A.G. Rents LLC of Tampa, Fla., a franchisee of ColorTyme  Inc.; Red  Zone Inc. of Dallas, a ColorTyme franchisee; B. Stamper Enterprises Inc. of  Russellville, Ky., a franchisee of Premier Rental-Purchase Inc., and C.A.L.M.  Ventures Inc. of Nashville, Tenn., a Premier  Rental-Purchase franchisee.

The commission said the settlements prohibit the companies from further  illegal spying, from activating any location-tracking software without customer  consent and from deceptively collecting information about consumers.

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