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Rent-to-own laptops secretly photographed users having sex, FTC says

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Courtesy Wired.com:
By David Kravets

Seven rent-to-own companies and a software maker are settling charges with the Federal Trade Commission that rental computers illegally used spyware that took “pictures of children, individuals not fully clothed, and couples engaged in sexual activities.”

As per the course, the FTC slapped the hand of DesignerWare of North East Pennsylvania and the rent-to-own companies. The settlement, announced Tuesday, only requires them to halt using their spy tools, which has been employed on as many as 420,000 rentals.

The software, known as Detective Mode, didn’t just secretly turn on webcams. It “can log the keystrokes of the computer user, take screen shots of the computer user’s activities on the computer, and photograph anyone within view of the computer’s webcam. Detective Mode secretly gathers this information and transmits it to DesignerWare, who then transmits it to the rent-to-own store from which the computer was rented, unbeknownst to the individual using the computer,” according to the complaint.

Under the settlement, the companies can still use tracking software on their rental computers, so long as they advise renters, the FTC said. The companies include Aspen Way Enterprises Inc.; Watershed Development Corp.; Showplace Inc., doing business as Showplace Rent-to-Own; J.A.G. Rents LLC, doing business as ColorTyme; Red Zone Inc., doing business as ColorTyme; B. Stamper Enterprises Inc., doing business as Premier Rental Purchase; and C.A.L.M. Ventures Inc., doing business as Premier Rental Purchase.


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