Anti-virus firms hit with major fines over auto-renewals
Security firms Symantec and McAfee have each been fined $375,000 for charging customers for renewing annual services without permission. The firms also agreed to rewrite terms and conditions to make it clearer when subscriptions would automatically renew each year.
The fines follow investigations by the Attorney General’s office in New York relating to anti-virus packages. The firms were accused of misleading customers in two ways. First, some customers did not realize the product they were buying was an annual subscription (covering updates when new security threats are discovered) and that their credit cards would be charged each year.
Second, some customers found it difficult to contact the firms to either cancel their subscription, or ask for refunds after payments were wrongly applied to their cards.
Attorney General Andrew Cuomo said there was a particular problem with charges not showing up on credit card bills until several months after the renewal. He said the firms “will now have to be clear and up-front with their customers when it comes to renewal fees. In other words, no more hide the ball with renewal fees.”
As part of the agreement, both firms will now not only send e-mails to customers warning them when a renewal payment is forthcoming, but will remind them again once the payment is made, giving them 60 days in which to cancel their subscription and receive a relevant refund.
PC World notes that Symantec customers can now unsubscribe at https://www.mynortonaccount.com/amsweb/default.do, while McAfee customers should call 1 (866) 622-3911 for cancellations.
Auto-renewals have been used by both firms for several years. They argue that it helps prevent customers unintentionally having their computers put at threat because they forgot to renew their security package. The two firms each told the Associated Press they were already working to improve the clarity and transparency of their auto-renew policies.
Lawyers for the two firms will presumably now be checking the small print of the agreement with Cuomo carefully to make sure they won’t automatically be fined another $375,000 next year.
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June 11th, 2009
>some customers did not realize the product they were buying was an annual subscription
In the early days you would buy anti-virus and as part of the deal you’d get ongoing updates at no extra charge. It’s easy to buy these anti-virus packages and not realize you’re just buying a subscription. It’s troublesome to say the least.
June 12th, 2009
That is the consequence of US-mentality: using the credit-card for everything. In all other countries practically all payments are made (or not) by realistic-thinking people upon receiving an invoice and scam like this is a lot rarer. If one doesn’t think and likes to live on credit, apart from being shorn with extremely high interest rates, one gets scammed; it is that easy.
June 13th, 2009
Good. It should have been more and other companies should be fined too.