In a complaint filed in federal court, the FTC charged that Restoro Cyprus Limited and Reimage Cyprus Limited, both based in Cyprus, tricked consumers into signing up for computer repair services through deceptive marketing.
Consumers were lured or alarmed by fake Microsoft Windows pop-ups, which stated that the consumers’ computer or system was infected with viruses and urged consumers to “scan” their computers “To avoid more damage.” The FTC charges that, regardless of the actual health of the consumers’ computers, the companies’ scans typically identified purported serious issues that needed immediate attention.
Following the scans, the companies urged consumers to purchase its software online to “fix” the alleged problems or remove alleged viruses and malware, according to the complaint. The software’s cost typically ranged from $27 to $58.
After purchasing the software, consumers were provided a number to call to “activate” the software. Thereafter, Restoro and Reimage telemarketers attempted to sell additional services by accessing consumers’ computers and misrepresenting that routine computer errors and messages were signs of malware, viruses or other problems. The companies’ telemarketers routinely claimed that the “problems” on consumers’ computers could not be fixed with the newly purchased software alone and required help from a Restoro or Reimage technician, which cost hundreds of dollars more, according to the complaint.
Under the proposed order, which must be approved by a federal court before it goes into effect, Restoro and Reimage will be required to pay $26 million, which the FTC intends to use to provide redress to deceived consumers. The proposed order also prohibits Restoro and Reimage from misrepresenting security or performance issues or any other material issues related to the sale, marketing or distribution of any product or service, and from engaging in deceptive telemarketing.
The CEO of the two companies is Giorgos Avraamidis.