On Wednesday, New York Attorney General Andrew M. Cuomo announced that McAfee and Symantec will pay $375,000 USD each in costs and penalties after the two companies renewed customer subscriptions without notice or permission.
McAfee and Symantec settle renewal dispute for $375,000 each (IMG:J.Anderson)
It’s a known fact that when you buy security software, accompanying updates are only available for a limited time. The updates often last about a year or, if the user got in on a deal, perhaps a little longer.
However, once that time is up users need to renew the update agreement. The problem is, the ones who know this bit of information about the security vendors are often the ones who have little need for it because they are savvy enough to avoid the risks online.
For average consumers, those who make up the bulk of the Internet population and who have the basics down when it comes to the Web and its risks, were surprised to see charges for software they had already paid for. Some of them even complained to the Attorney General’s office, which sparked an investigation.
After looking into the online marketing and sales practices of Symantec and McAfee, Cuomo’s office found that both vendors had failed to adequately disclose the fact that subscriptions would be automatically renewed for a fee.
Cuomo's office said that information about automatic renewal charges was not clearly disclosed, but was instead hidden at the bottom of long Web pages or in the fine print of license agreements.
In addition, the investigation also revealed that both Symantec and McAfee made it difficult for consumers to contact the companies to opt out of automatic renewal or to request refunds for unauthorized credit card charges.
"Companies cannot play hide the ball when it comes to the fees consumers are being charged. Consumers have a right to know what they are paying, especially when they are unwittingly agreeing to renewal fees that will not appear on their credit card bill for months," the office said in a statement.
"Symantec and McAfee -- two of the nation’s largest vendors of computer security software -- will now have to be clear and up-front with their customers when it comes to renewal fees. In other words, no more hide the ball with renewal fees," it added.
Under the terms of the settlement, Symantec and McAfee will clearly disclose to consumers any automatic renewal program and provide an easy, transparent, and automated means to opt out of said renewal.
The companies are also expected to provide electronic notification to consumers before and after renewal of the subscription and will provide refunds to consumers who request them within 60 days of being charged.
This is in addition to a combined $750,000 USD fine that the two vendors will pay to the Attorney General’s office in order to settle all claims.
Interested in a more interactive TTH? Join our Facebook Group Want regular updates from The Tech Herald? Follow us on Twitter
Comment on this Story