Information technology security firms Symantec and McAfee are being forced to change automatic subscription renewal methods for their Australian customers after their US parent companies were fined over $900,000 for charging customers’ credit cards without permission.
The two firms were the target of an investigation by the New York Attorney-General, Andrew Cuomo, after complaints were received from customers who were charged without their knowledge.
“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.”
Both US companies said they will be more upfront with users about renewal processes, and will make it easier for customers to change subscription details.
Symantec Australia spokeswoman Debbie Sassine says the company appreciates the matters being brought to the company’s attention, and is working to change customer subscription processes.
“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. 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.”
“We have improved our disclosures to ensure that the auto-renewal process is clear to our customers, specifically making the ability to opt out of the auto-renewal feature more clear and accessible.”
McAfee Australia enterprise sales director, Tim Clemens, said the company is changing its processes but maintains the position that auto-subscription is critical for their products. If a customer does not receive an urgent update, he argues, their computer could become infected with a deadly virus.
“Even a short, unintentional lapse could result in irreversible damage or irretrievable data loss,” he said.
“McAfee will provide electronic notification to consumers before and after the subscription is renewed, and will provide refunds within 60 days to any consumers who request them.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
