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Op-Ed: Office Depot settles for $35 million with FTC for fake reports

Software called PC Health Check allegedly gave false reports that customer computers were infected with malware. Services to correct these alleged infections cost customers hundreds of dollars. Complaints against PC Health Check go back to 2012, but the software was still being used as late as 2016.
Please note: A settlement, in this case, does not mean a conviction or any admission of guilt on the part of Office Depot or related parties. The settlement is made to cover the possible statutory breaches, and in this instance, to provide funding for refunds to customers.
It’s not a pretty picture, is it? Why would a nationwide top brand like Office Depot, also trading as Office Max, do something like this? $35 million is a pretty expensive hobby, particularly for a rather iffy, not to say totally unnecessary situation with customers.
The stupidity is pretty obvious. Non-existent malware is pretty easy to cross-check. Any other type of software on Earth could contradict a false report. If this absurd issue was the result of a deliberate decision on anyone’s part, it was pretty dumb.
That’s nothing like all, folks
Personal computer security, particularly online security and the very high risk of malware issues are a collective major cash cow. Nobody expects very much of Internet security. The main reason for that is that everybody has been hit by some sort of malware, sometime.
The implication in this case is that it is all too easy to exploit people’s fear of malware, and make money out of it. That is a particularly lousy precedent in a sector where scams are contagious, and in which a copycat scheme would be easy to do.
Let’s face it – The computer security sector is hardly famous for its ethical behaviour, intelligence, charm, social skills, or receptivity to customer needs. Even some top brand PC software has been thoroughly trashed as hopelessly inadequate. Exactly why anyone would think that some random malware diagnostic tool would be any better is open to debate, but obviously many people did.
What does it take to get this useless, expensive sector to simply do its job properly? All you guys have to do is sell decent software. Is that asking too much?
…Or is it just too damn hard to resist the incredible allure of some sleazy little scam? An idea that wouldn’t have made it past the proposal stage of a third rate sitcom is good business, is it?
What is it about American business, where the least intelligent, least talented people seem to spend endless time creating disasters? This particular idea was absolutely guaranteed to fail. These geniuses also created costly problems for customers, for their employers, suppliers, and better still, make customers even less prepared to trust anyone.
If the allegations in this case had been taken to court by some of the world more legally murderous software customers :
• These companies could have been in uncharted territory for legal liabilities, particularly in a class action
• Massive PR damage
• Christmas for competitors, who now look much safer to potential customers
• Anyone’s guess what effect on the stock price (Office Depot is a listed company on the NASDAQ)
One thing I’ve always admired about American CEOs is their willingness to employ and be crucified by their chicken brained employees. It’s the guy at the top that takes the bullets, not the nasty little objects who suggest and carry out these idiotic schemes. (As a matter of fact, it’s always good to have a naive, upstanding solid citizen as your CEO, because such people simply aren’t suspicious enough.)
Anyway, the moral of the story is simple enough – If you think you’re being ripped off by software, you probably are. Get a pro bono lawyer, start a nice big folksy class action, and screw the miserable bastards for every cent, down to their grandchildren’s bone marrow. You’ll almost certainly win.
Happy, idiots?

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Editor-at-Large based in Sydney, Australia.

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