The smartphone warnings looked ominous: "Virus detected," coupled with a robot that looked a lot like the Android operating system logo. Except according to the Federal Trade Commission, the warnings were "a scam" by a company whose own executive in an internal document called its product "a terrible user experience."
The agency sued Jesta Digital LLC in U.S. District Court for the District of Columbia yesterday, charging the company with violating the FTC Act, which bars unfair and deceptive acts. The case immediately settled, with Jesta agreeing to pay $1.2 million to the FTC and issue refunds to “a large number” of consumers.
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