2nd UPDATE: NY AG Reaches Renewal Pacts With Symantec, McAfee
10 Junho 2009 - 3:51PM
Dow Jones News
New York Attorney General Andrew Cuomo said Wednesday computer
security software firms Symantec Corp. (SYMC) and McAfee Inc. (MFE)
have agreed to pay $750,000 to end a probe by his office into their
practices regarding automatic renewals of consumer software
subscriptions.
In a statement, Cuomo said the companies will each pay $375,000
in penalties and costs and will make detailed disclosures regarding
their subscription terms and renewals.
"Companies cannot play hide the ball when it comes to the fees
consumers are being charged," Cuomo said. "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."
An investigation by Cuomo's office found that Symantec and
McAfee failed to adequately disclose to customers that
subscriptions would be automatically renewed and that consumers
would be charged for subsequent subscriptions. Information about
automatic-renewal charges wasn't clearly disclosed, but was instead
hidden at the bottom of long Web pages or in the fine print of
license agreements, Cuomo said.
As part of the settlement, Symantec and McAfee will clearly
disclose to consumers any automatic-renewal program and provide a
transparent and automated means to opt out of renewal, Cuomo said.
The companies will provide electronic notification to consumers
before and after renewal of the subscription and will provide
refunds to consumers who request them within 60 days of being
charged, he said.
In a statement, Symantec said it has worked hard over the past
two years to improve its auto-renewal process "to make it more
transparent and visible for our customers" and to improve its
disclosures to ensure the process is clear, particularly the
ability to opt out.
"We will continue to work in the future to comply with the
office of New York's attorney general to make sure their concerns
are fully addressed," the company said. "Customer service is our
top priority, and we will continue to look for opportunities to
improve our auto-renewal process and make it as user-friendly as
possible for our customers."
In a statement, Mark Cochran, McAfee's general council and
executive vice president, said the company began working with the
attorney general's office about two years ago to clarify its
auto-renewal policies.
"The company has fully cooperated with the NYAG and has also
voluntarily implemented a number of enhancements to its
auto-renewal program," Cochran said. "McAfee will also be making it
easier for consumers to opt out of auto-renewal on McAfee's Web
site, and will further clarify the subscription duration and
disclosure of its auto-renewal program."
-By Chad Bray, Dow Jones Newswires; 212-227-2017;
chad.bray@dowjones.com