Anti-virus vendors fined over auto-renewals

Who's been a naughty boy then?

Anti-virus vendors Symantec and McAfee have been slapped over the wrists by the New York Attorney General's office, and have agreed to $375,000 (£228,787) in fines to settle charges that they automatically charged customers software subscription renewal fees without their permission.

Investigators found that the two companies had "failed to adequately disclose to consumers that subscriptions would automatically be renewed and that consumers would be charged," the office of Andrew Cuomo said in a statement, announcing the settlement. "Companies cannot play hide the ball when it comes to fees consumers are being charged."

In addition to paying the settlement fine, Symantec and McAfee will now make better disclosures about subscription renewal fees when customers sign up, the attorney general's office said.

Security companies have been offering automatic renewals to their customers for nearly a decade now, but in the past few years it's become much more common in the anti-virus industry. McAfee and Symantec say that they prevent customers from having out-of-date anti-virus software on their computers. That may make customers safer, but it also makes company investors happy because renewal fees keep rolling in.

Symantec began enrolling North American customers in automatic renewal by default in November 2005, and has since expanded the practice worldwide. McAfee began the practice in 2001. Under these programs, customers pay upfront for a one-year subscription and then, a year later, are automatically billed for the next year's service.

The companies say they have been working with the Cuomo's office for the past two years to improve practices and they have now made it easier to understand and opt out of their respective auto-renewal features

For example, Symantec has now modified its online shopping cart to include better disclosures and an explanation of how to opt out of the program.

Norton users who want to unsubscribe from Symantec's program, can do so on their Norton Account webpage, Symantec said.

Both companies will now refund auto-renewal fees within 60 days of the charge, Cuomo's office said.


What are your views on this subject? Use the form below to post a comment on this article up to 500 characters.


Characters remaining: 500

Related Security news

Microsoft denies building security 'backdoor' in Windows 7

Privacy organisations shouldn't read too much into NSA involvement it says

Pentagon expands exclusive deal with McAfee

Department of Defense uses McAfee products

Police arrest pair over global banking web scam

Man and woman arrested in Manchester for using notorious Zeus Trojan

Security star Fortinet sets price for IPO

Investors still have taste for tech.



Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Database security: Preventing enterprise data leaks at the source

IDC discusses the growing internal threats to business information, the impact of government regulations on the protection of data, and how enterprises must adopt database security best practices...

Download Whitepaper

Service-oriented security

SOA has become an integral part of enterprise software by providing a framework to efficiently develop software as services that is easily sharable, reusable, and integrated. No where is the need more apparent than in the Identity Management space. Welcome to the age of Service-Oriented Security (SOS).

Download Whitepaper

Data protection prospective vendor checklist

Organisations need a way to map business needs against all these challenges in procuring a technical solution. To help, SANS has developed the following Prospective Vendor Checklist.

Download Whitepaper

Unlock the power of the mainframe

This whitepaper presents the notion of CICS as an integration hub based on a component-based, service-oriented architecture supporting Web services. Highlights will review the challenges and contrasted support for Web services natively in CICS.

Download Whitepaper

Techworld UK - Technology - Business

COLT White Paper

Are all VoIP services the same?

Questions to ask your service provider to ensure you get the VoIP service you need
With careful choice of partner, your business can have all the advantages of VoIP access - reduced costs, flexibility and simplicity - without the drawbacks.
This white paper is your guide to ensure you get right the VoIP service and details the pitfalls which businesses would do well to avoid.

Download white paper
BMC

Ride the express lane in the journey to speed ITIL adoption

Explore the challenges in making the journey to ITIL and the criteria for selecting consulting services
By following ITIL practices, your IT organisation will become more closely integrated with the business. We recommend making the journey to ITIL in a sequence of six incremental steps, the phases of which are driven through execution of a strategic transformational roadmap.

Download white paper

Webcast: IT Financial Management: Cost Optimisation for Efficiency and Agility.
On Demand Webcast
Join this webcast to learn about the techniques and technologies that can help you prove the value of IT to the business by understanding the true cost of today's IT services and those that will be necessary to deliver future success.

Register Today

Site Map

IDG Network

* *