Description

Issued ruling in public lawsuit against NTS regarding deceptive business practices

On 4 December 2020, the United States District Court for the Northern District of California (Court) issued a ruling in the public lawsuit against NTS IT Care (NTS) regarding deceptive business practices. The public lawsuit was filed by the American Federal Trade Commission (FTC) in response to multiple customer complaints relating to the deceptive practices of NTS. In particular, NTS operated a technical support scheme where pop-up alerts would inform internet users that their computer was infected by a virus. The consumers were then instructed to call a phone number where they were deceived to buy technical support services based on false computer diagnostics and false claims to be affiliated with Microsoft, Apple, or other well-known technology companies. The Court ruled that NTS engaged in deceptive business practices and ordered a ban on NTS for offering or selling technical support products or services, using unlawful telemarketing practices, misrepresenting any entity and collecting personal account information. Further, the Court issued a monetary judgment of USD 4.9 million.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
software provider: other software
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2020-05-19
under deliberation

On 19 May 2020, the American Federal Trade Commission (FTC) filed a public lawsuit against NTS IT C…

2020-12-04
in force

On 4 December 2020, the United States District Court for the Northern District of California (Court…

2023-11-07
in force

On 7 November 2023, the American Federal Trade Commission (FTC) announced the terms of the settleme…