The FTC approved nine final orders settling allegations that seven rent-to-own...

The FTC approved nine final orders settling allegations that seven rent-to-own companies and a software design firm and its two principals spied on consumers using computers the consumers had rented from them (CED Sept 26 p6). Using software, the companies recorded screenshots of confidential and personal information, logged customers’ computer keystrokes, and took photos of people in their homes without the customers’ knowledge, said the complaint. Under the settlement, respondents will be prohibited from using monitoring software and banned from using “deceptive methods” to gather information from consumers, the FTC said (http://1.usa.gov/14qqOhT). The respondents will be prohibited from using geolocation tracking without consumer consent and notice, and from using “fake software registrations screens” to collect personal information. The seven rent-to-own stores are also barred from using information “improperly gathered” from consumers to collect on accounts, the FTC said. Respondents include DesignerWare and its principals Timothy Keller and Ronald Koller; Aspen Way Enterprises; Watershed Development Corp., doing business as Watershed and Aaron’s Sales & Lease Ownership; Showplace Rent-to-Own; J.A.G. Rents and Red Zone Investment d/b/a ColorTyme; B. Stamper Enterprises; and C.A.L.M. Ventures d/b/a Premier Rental Purchase. The agency’s vote, which took place after a public comment period, was 3-0-1. Commissioner Joshua Wright didn’t vote. Software company DesignerWare, and its principals, Koller and Keller, are prohibited from “providing others with the means to commit illegal acts,” said the FTC in announcing the approved orders. Under the settlements, the commission will have access to records so it can monitor compliance for 20 years, it said. Kelly said his company’s restricted Detective Mode Program could only be installed after a computer was reported stolen for tracking purposes, according to his public comment (http://1.usa.gov/11aDELh). The program was only installed when the renter claimed the computer was stolen and couldn’t be returned, he said. “DesignerWare has never had any reports that its license agreement with rental stores was ever violated and that the Detective Mode Program was ever installed on any computer other than one reported stolen.” He conceded that DesignerWare doesn’t know how all its licensees used the Detective Mode Program. Regarding improper use of video recording, Kelly said, “We have never been shown any evidence from the FTC that anyone was recorded having sex, pictures of children, etc.” He said every renter signed an agreement saying “if they steal it then the [sic] might be subject to being monitored!”