UK competition watchdog unveils principles to make a kinder antivirus business

Treat customers fairly when it comes to auto-renewal. Or else


The UK's Competition and Markets Authority (CMA) has unveiled compliance principles to curb locally some of the sharper auto-renewal practices of antivirus software firms.

The move follows the watchdog baring its teeth at McAfee and Norton over the issue of automatically renewing contracts.

The CMA took exception to auto-renewal contracts for antivirus software that customers in the UK signed up for and found difficult to cancel. Refunds and clearer pricing information (including making sure consumers were aware that year two could well end up considerably costlier than the first) were the order of the day.

Today's principles build on that work, and are aimed at helping antivirus companies toe the line where UK consumer law is concerned. They are a bit more detailed than a simple "stop being horrid."

The focus remains on auto-renewing contracts, where a customer signs up for a fixed period, then is charged again for subsequent periods. The CMA acknowledges that such arrangements are convenient, but they risk the consumer being locked into an agreement they no longer want or that they get stung with higher fees at renewal time.

While the principles are intended to be helpful, lurking in the background is consumer law and the threat of a potential trip to court for vendors stepping out of line.

First up comes a requirement to make sure customers are informed about auto-renewal, rather than hiding the detail in an End User Licence Agreement (EULA) or burying it in hard-to-read text through which a user must scroll.

Price claims must be "accurate" and "not mislead your customers" – so only show discounts against the normal price. It must also be possible to turn off the auto-renew easily, keep auto-renew turned off once it is off and, if on, make sure customers are reminded in good time that an auto-renew will happen.

Getting a refund must be easier and customers should be able to change their mind when auto-renewal happens. If the customer has stopped using the product, safeguards are needed around auto-renewal.

The last principle could pose a few challenges – how does a vendor become aware that a customer is not using its product? The suggestion from the CMA is to check if software updates are being received rather than simply charging users year after year.

The Register contacted McAfee and Norton for their thoughts on the principles, and will update should the companies respond. ®


Other stories you might like

  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading
  • Big Tech loves talking up privacy – while trying to kill privacy legislation
    Study claims Amazon, Apple, Google, Meta, Microsoft work to derail data rules

    Amazon, Apple, Google, Meta, and Microsoft often support privacy in public statements, but behind the scenes they've been working through some common organizations to weaken or kill privacy legislation in US states.

    That's according to a report this week from news non-profit The Markup, which said the corporations hire lobbyists from the same few groups and law firms to defang or drown state privacy bills.

    The report examined 31 states when state legislatures were considering privacy legislation and identified 445 lobbyists and lobbying firms working on behalf of Amazon, Apple, Google, Meta, and Microsoft, along with industry groups like TechNet and the State Privacy and Security Coalition.

    Continue reading
  • SEC probes Musk for not properly disclosing Twitter stake
    Meanwhile, social network's board rejects resignation of one its directors

    America's financial watchdog is investigating whether Elon Musk adequately disclosed his purchase of Twitter shares last month, just as his bid to take over the social media company hangs in the balance. 

    A letter [PDF] from the SEC addressed to the tech billionaire said he "[did] not appear" to have filed the proper form detailing his 9.2 percent stake in Twitter "required 10 days from the date of acquisition," and asked him to provide more information. Musk's shares made him one of Twitter's largest shareholders. The letter is dated April 4, and was shared this week by the regulator.

    Musk quickly moved to try and buy the whole company outright in a deal initially worth over $44 billion. Musk sold a chunk of his shares in Tesla worth $8.4 billion and bagged another $7.14 billion from investors to help finance the $21 billion he promised to put forward for the deal. The remaining $25.5 billion bill was secured via debt financing by Morgan Stanley, Bank of America, Barclays, and others. But the takeover is not going smoothly.

    Continue reading

Biting the hand that feeds IT © 1998–2022