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echo: osdebate
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from: mike
date: 2007-05-19 09:42:08
subject: Report - AV companies hiding credit card charges

From: mike 


http://weblog.infoworld.com/zeroday/archives/2007/05/report_av_compa.html

===
In a new report issued on the WindowsSecrets.com resource site, researchers
with the group have uncovered what they claim to be a dirty secret of the
consumer anti-virus market.

According to the site's editors, recent tests carried out by WindowsSecrets
staffers found that well-known consumer anti-virus providers including
Symantec, McAfee and Microsoft are making it hard for end users to realize
that they may be recurrently charged for subscriptions and updates to their
anti-malware products.

In the report published on May 18, WindowsSecrets contributor Scott Dunn
-- who is also a contributing editor with PC World Magazine -- contends
that the AV vendors deliberately hide terms of their product subscription
programs in the fine print of their Web sites, and fail to warn users
before charging their credit card accounts for periodic updates.

After one of the site's readers highlighted the issue in Symantec's Norton
Internet Security product line, Dunn said he dug a little deeper and found
that the situation exists across the industry.

"The unfortunate truth is that the practice of enrolling customers in
automatic renewal for antivirus and other security products is not limited
to Symantec. Indeed, it has become an industry standard," Dunn writes.
"Microsoft Windows Live OneCare, Symantec, McAfee, and ZoneAlarm all
enroll customers into the companies' automatic subscription-renewal
programs with the purchase of a subscription-based product. In most cases,
customers aren't given a choice to opt out, and only find out about the
annual renewals when they receive an e-mail notice or see a charge on their
credit card."

"For some users, automatic renewal is a boon, since it saves the
annual chore of manually renewing subscriptions to new virus
definitions," Dunn said. "Others view the policy with suspicion,
especially since these policies are often not made clear at the outset.
Moreover, the amount charged for the renewal each year can change,
depending on the going rate for the subscription at the time of the
renewal."

After buying products from all the listed vendors, Dunn found that
Microsoft's Windows Live OneCare had the "most-hidden automatic
subscription-renewal policy" and was "the most difficult to learn
how to cancel."

In the midst of Microsoft's 6,708-word user licensing document the company
warns that it "may automatically renew your service and charge you for
any renewal term," but it offers little else in the way of related
details.

In the section of the Windows Live OneCare agreement where a customer
enters their credit card information and may review the terms of
transaction before confirming their purchase, users must click through to
another page where they are informed: "This is an annual subscription
that will be automatically charged to your credit card every year at the
then current price unless you cancel your account or select an alternative
plan."

Dunn rates McAfee as second worst for hiding its subscription pricing
policies deep in its 3,280-word end user licensing agreement, with Symantec
getting better reviews for being more upfront with its potential for
automatic renewal charges and for making it easier for customers to
opt-out.

ZoneAlarm was the most forthcoming vendor tested by WindowsSecrets,
providing a check box on its purchasing agreement that reads:
"Automatically renew my subscription upon expiration."

According to Brian Livingston, editorial director of Seattle-based
WindowsSecrets, the policy of burying future subscription charges on the
part of AV vendors is nothing short of "consumer fraud."

"We support the idea of people renewing their AV every year, but just
because you're a software company that doesn't give you right to hide the
fact that you want to charge people's credit cards again and again without
telling them about it first," said Livingston, who is also a former
contributor to InfoWorld. "This seems like a basic consumer protection
issue in that consumers should be fully informed before giving that type of
approval, and have the ability to turn services off easily on the order
form."

Livingston said that when contacted about the issue, Microsoft officials
said they follow the same practice in every country that allows it,
including the U.S.

The expert contends that end users or some industry body must lean on the
AV companies to make their subscription policies more transparent.

"Companies simply wouldn't be allowed to get away with this type
behavior of in any other line of business, but clearly the software
industry thinks it can repeatedly charge people under the pretense that
they need AV protection," Livingston said. "The point is, if
customers were reminded every twelve months that it was time to renew their
AV, they could make educated decisions about whether they wanted to renew
what they've been using, or change products."
===

 /m

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