WASHINGTON, D.C. – The Federal Trade Commission (FTC) has announced plans to distribute more than $25.5 million to consumers who were misled into purchasing unnecessary computer repair services by two Cyprus-based tech support companies. These payments, resulting from a settlement with Restoro Cyprus Limited and Reimage Cyprus Limited, will compensate approximately 736,375 individuals affected by the companies’ deceptive practices.
Misleading Marketing Tactics Targeted Consumers
The FTC’s investigation revealed that Restoro and Reimage utilized dishonest marketing and sales tactics to convince consumers to purchase their computer repair services. The companies falsely claimed that users’ devices were compromised by security or performance issues that required immediate attention. Through these misrepresentations, they pressured consumers into signing up for costly services that were unnecessary.
According to the FTC, these actions violated both the FTC Act and the Telemarketing Sales Rule, which prohibit deceptive practices in product marketing and sales communications.
Settlement Terms and Consumer Refunds
Following the allegations, the FTC reached a settlement with the two companies in March 2024. Under the settlement order, the offending businesses agreed to a prohibition on misrepresenting the necessity of their services or using deceptive marketing methods in the sale of any product or service. The agreement also barred the companies from engaging in fraudulent telemarketing activities.
The $25.5 million settlement fund obtained from the companies will be distributed directly to affected consumers through PayPal payments. Eligible individuals will receive an email notification between now and March 13. These emails will provide instructions on how to redeem their payment in the PayPal system. The FTC advises recipients to act promptly, as payments must be redeemed within 30 days of receipt.
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