Two of the world's largest security software vendors have settled a case
brought by New York State over billing customers without their consent.
Symantec and McAfee have each agreed to pay $375,000 (£228,000) in fines
after New York attorney general Andrew Cuomo brought a case against them for
automatically renewing customer subscriptions to security software applications.
The two companies were accused of re-subscribing business and residential
customers and charging the accounts without consent. While this agreement was
put in the terms and conditions of the software, it was not made clear or
prominent enough, according to Cuomo.
"Companies cannot play hide the ball when it comes to the fees consumers are
being charged. Consumers have a right to know what they are paying, especially
when they are unwittingly agreeing to renewal fees that will not appear on their
credit card bill for months," he said.
"Symantec and McAfee - two of the nation's largest vendors of computer
security software - will now have to be clear and upfront with customers when it
comes to renewal fees. In other words, no more hide the ball."
Cuomo ruled that Symantec and McAfee also made it difficult for customers to
cancel their subscriptions and to obtain refunds where they had been
re-subscribed.
Both companies will have to make renewal terms much clearer, and refund
subscribers if they cancel a subscription in 60 days or less. They will also
have to send out warnings before and after re-subscription.
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