Q:

Why is OMG Tech under investigation by the FTC?

A:

Quick Answer

Federal authorities are investigating OMG Tech Help LLC, when the company was accused of charging people for unnecessary computer repairs after diagnosing them with fake issues. The FTC obtained a temporary restraining order against the company and its entities, claiming the scheme took more than $120 million from customers.

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Full Answer

In the court filing, the FTC claimed that the company used an advertised computer scanning system that detected problems with slow-running computers, and flagged temporary files and cookies as errors. After finding the errors, the company then offered to fix them with a software download that costed $29.95. The company also sold longer-term maintenance plans to customers that believed their computers were riddled with problems. The FTC claimed that through the systems, the company has violated the Fair Trade Commission Act, the Florida Deceptive and Unfair Trade Practices Act and the Telemarketing Sales Rule.

Other tech companies were also named in the court filing, including Boost Software of Boston and Naples, Florida. Boost transacts business through the Delray-Beach-based company Vast, who has also been named in the filing. The court orders issued have temporarily shut down the companies of the defendants. All of the companies’ assets have also been frozen, and all have been placed under the control of a court-appointed receiver.

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