On September 25, 2012, the Federal Trade Commission announced a settlement with seven rent-to-own companies that secretly installed software on rented computers, clandestinely collected information, took pictures of consumers in their homes (WTF?!) and tracked these consumers’ locations.
If you haven’t vomited on your computer from the sickening outrage, you can read the FTC press release here.
Software design firm DesignerWare, LLC licensed software to rent-to-own stores ostensibly to help them track and recover rented computers. The software collected the data that enabled rent-to-own stores, including franchisees of Aaron’s, ColorTyme, and Premier Rental Purchase, to track the location of rented computers without consumers’ knowledge
According to the FTC, the software enabled remote computer disabling if it was stolen, or if the renter failed to make payments. It included an add-on purportedly to help stores locate rented computers and collect late payments. Alarmingly, the software also collected data that allowed the rent-to-own operators to secretly track the location of rented computers, and thus the computers’ users.
When activated, the nefarious feature logged key strokes, captured screen shots and took photographs using a computer’s webcam, according to the FTC. It also presented a fake software program registration screen that tricked consumers into providing their personal contact information.
“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,” said Jon Leibowitz, Chairman of the FTC. “The FTC orders today will put an end to their cyber spying.”
“There is no justification for spying on customers. These tactics are offensive invasions of personal privacy,” said Illinois Attorney General Lisa Madigan.
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