The Federal Trade Commission (FTC) is set to distribute over $25.5 million in refunds to victims misled by tech support companies Restoro and Reimage.
The payouts will begin on March 13, and 736,375 affected consumers will receive their refunds via PayPal. Eligible individuals will receive an email notification and must redeem their payments within 30 days.
Restoro Cyprus Limited and Reimage Cyprus Limited were fined $26 million last year for using deceptive pop-ups and online ads that falsely warned users about security threats on their computers. These tactics tricked consumers into purchasing unnecessary repair services. FTC investigators found that the companies’ software always detected fake issues, regardless of the actual condition of the device.
In addition to the financial penalty, the FTC has banned the two companies from using deceptive telemarketing tactics or falsely claiming performance and security issues to sell their services. This move follows the FTC’s recent actions against other tech firms, including Turbotax-maker Intuit and Avast, for misleading consumers.
The agency continues cracking down on digital scams, ensuring companies cannot exploit users through false advertising and manipulative sales tactics.
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