FTC Charges Tech Support Companies With Using Deceptive Pop-Up Ads to Scare Consumers Into Purchasing Unneeded Services
The Federal Trade Commission has charged the operators of a multi-national tech support company with using deceptive pop-up internet ads to scare thousands of consumers into paying hundreds of dollars each for unnecessary technical support services.
A federal court has issued an order temporarily stopping the defendants’ practices and freezing their assets. The defendants in the case have commonly operated under the name Global Access Technical Support.
The FTC’s complaint alleges that the defendants used affiliate marketers to place internet pop-up ads designed to deceive consumers into thinking the ads originated from legitimate technology companies like Apple or Microsoft to warn the consumer that their computer was infected with viruses or malware. The ads often included loud alarms or recorded messages warning of the apparent dire threat to consumers’ computers and “hijacked” consumers’ browsers, leaving consumers unable to navigate around the ads or close them. The ads prompted consumers to contact a toll-free number.
According to the complaint, once consumers called the toll-free number, they were connected to a call center in India and pitched by telemarketers who claimed to be affiliated with or certified by a major technology company. Consumers were told that in order to diagnose the problem, they must provide the telemarketer remote access to their computer. The telemarketers then showed consumers otherwise innocuous screens and directories on their computers, deceiving them into believing they were evidence of problems that require technical support services to repair.
The complaint alleges that the telemarketers pressured consumers to spend anywhere from $200 to $400 for repair services that could take hours to complete and which were at best useless, and in some cases could actually harm consumers’ computers.
The FTC’s complaint alleges that the defendants violated the FTC Act. The defendants are Global Access Technical Support, LLC (also doing business as Global S Connect, Yubdata Tech and Technolive); Global sMind LLC (also doing business as Global S Connect); Source Pundit LLC (also doing business as OneSource Tech Support); Helios Digital Media LLC; VGlobal ITES Pvt. Ltd.; Rajiv Chhatwal; Rupinder Kaur; and Neeraj Dubey.
The Commission thanks the Better Business Bureau Serving Eastern Missouri and Southern Illinois for their collaboration and contributions to this case.
The Commission vote authorizing the staff to file the complaint was 3-0. The complaint was filed in the U.S. District Court for the Eastern District of Missouri.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
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