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Companies agree to settle computer spying charges

WASHINGTON - A software program developed by a Pennsylvania company to track the locations of rented computers secretly collected confidential and personal information about consumers, including medical records, bank statements, and even webcam pictures of couples engaged in sex, the Federal Trade Commission said Wednesday in a settlement that bars eight companies from any further cyber-spying.

    by By Richard Lardner, Associated Press, Inquirer
    Published 

WASHINGTON - A software program developed by a Pennsylvania company to track the locations of rented computers secretly collected confidential and personal information about consumers, including medical records, bank statements, and even webcam pictures of couples engaged in sex, the Federal Trade Commission said Wednesday in a settlement that bars eight companies from any further cyber-spying.

The case involved seven rental companies and an Erie County, Pa., firm called DesignerWare L.L.C., which licensed its PC Rental Agent software to stores so they could shut off and recover computers that had not been returned in time or had been stolen.

But the software could do much more, the commission said. With an add-on program known as Detective Mode, the software could capture screen shots, furtively take photos using the webcam, log keystrokes, and trick consumers into providing personal contact information, according to the FTC.

Detective Mode could gather data every two minutes that a computer was connected to the Internet until the program was directed to stop.

"In numerous instances, Detective Mode webcam activations have taken pictures of children, individuals not fully clothed, and couples engaged in sexual activities," the FTC said.

The individuals and companies named in the FTC's complaint are DesignerWare; Aspen Way Enterprises Inc. of Billings, Mont., a franchisee of Aaron's Inc.; Watershed Development Corp. of Lake Bluff, Ill., an Aaron's franchisee; Showplace Inc. of Marion, Ohio; J.A.G. Rents L.L.C. of Tampa, Fla., a franchisee of ColorTyme Inc.; Red Zone Inc. of Dallas, a ColorTyme franchisee; B. Stamper Enterprises Inc. of Russellville, Ky., a franchisee of Premier Rental-Purchase Inc.; and C.A.L.M. Ventures Inc. of Nashville, a Premier Rental-Purchase franchisee.

The commission said the settlements prohibit the companies from further illegal spying.

    By Richard Lardner, Associated Press, Inquirer