United States of America: Issued ruling in investigation into Powerline Group Inc and affiliated companies for allegedly illegally selling "spyware"

Description

Issued ruling in investigation into Powerline Group Inc and affiliated companies for allegedly illegally selling "spyware"

On 27 January 2023, the New York Office of the Attorney-General (OAG) concluded an investigation and reached a settlement with Powerline Group Inc and fifteen related business entities owned by Patrick Hinchy for their illegal sale of "spyware products" that allowed users to secretly monitor the activity on another device, including messages, photos, location and social media activity among others. The companies' advertising misled buyers into believing that their products were legal. The OAG came to an agreement with Powerline Group and its affiliated entities for a settlement of USD 410'000 and to modify their apps to notify owners that their devices were being monitored. The investigation also determined that the companies misrepresented refunds and data security policies, did not disclose the potential harm to a device and created fake review sites that allegedly provided independent tech advice but actually solely promoted the spyware products sold by the companies.

Original source

Scope

Policy Area
Data governance
Policy Instrument
Data protection regulation
Regulated Economic Activity
software provider: other software
Implementation Level
subnational
Government Branch
executive
Government Body
central government

Complete timeline of this policy change

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2023-01-27
under investigation

On 27 January 2023, the New York Office of the Attorney-General (OAG) concluded an investigation an…

2023-02-01
in force

On 1 February 2023, the settlement concluded between the New York Office of the Attorney-General (O…