Department of Law Department of Law
120 Broadway The State Capitol
New York, NY 10271 Albany, NY 12224

News from Attorney General Andrew M. Cuomo

FOR IMMEDIATE RELEASE
New York City Press Office / 212-416-8060
Albany Press Office/ 518-473-5525
nyag.pressoffice@oag.state.ny.us

CUOMO FORGES SETTLEMENT WITH SYMANTEC AND McAFEE OVER AUTOMATIC
SUBSCRIPTION RENEWALS

Nation’s Two Largest Computer Security Software Providers Routinely
Charged Customer Credit Cards without Permission
~
Companies Will Reform Practices and Pay $750,000 in Penalties and
Costs

NEW YORK, NY (June 10, 2009) - Attorney General Andrew M. Cuomo today
announced a settlement with computer security software vendors Symantec
(NYSE: SYMC) and McAfee (NYSE: MFE) after the companies renewed
customers’ software subscriptions without the customers’ knowledge
or authorization. Under the Attorney General’s settlement, both
companies will make detailed disclosures to consumers about subscription
terms and renewal, and each will pay $375,000 in penalties and costs.

“Companies cannot play hide the ball when it comes to the fees
consumers are being charged. 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.
Symantec and McAfee - two of the nation’s largest vendors of computer
security software - will now have to be clear and up-front with their
customers when it comes to renewal fees. In other words, no more hide
the ball with renewal fees.”

Symantec and McAfee both offer a wide range of products to individuals
and businesses to protect computers from internet threats such as
computer viruses and spyware. Both companies regularly revise and
update their software to combat the latest security threats, and they
provide these updates to their existing customers. Customers who buy
Symantec or McAfee software are only entitled to a limited
“subscription” to these updates, usually for a period of one
year. After this period, customers must pay for a renewal subscription
in order to receive new software updates.

The Attorney General conducted an extensive investigation into the
online marketing and sales practices of Symantec and McAfee. The
Attorney General’s investigation found that the companies failed to
adequately disclose to consumers that subscriptions would be
automatically renewed and that consumers would be charged for subsequent
subscriptions. Information about automatic renewal charges was not
clearly disclosed, but was instead hidden at the bottom of long webpages
or in the fine print of license agreements.

The Attorney General’s office received complaints from customers who
had bought Symantec and McAfee software over the internet and whose
credit cards were later charged for “renewal subscriptions” without
their knowledge or consent. In addition, the investigation also
revealed that both Symantec and McAfee made it difficult for consumers
to contact the companies to opt out of automatic renewal or to request
refunds for unauthorized credit card charges.

Under the terms of the Attorney General’s settlement, Symantec and
McAfee will clearly disclose to consumers any automatic renewal program
and provide an easy, transparent, and automated means to opt out of
renewal. The companies will provide electronic notification to
consumers before and after renewal of the subscription and will provide
refunds to consumers who request them within 60 days of being charged.
The companies will clearly disclose the length of time that they will
continue to support and provide updates to any purchased software.
Symantec and McAfee will also pay a combined $750,000 to the Attorney
General’s office to settle all claims.

Symantec and McAfee are the nation’s largest and second-largest
provider
s of consumer security software, respectively.

The investigation was handled by Assistant Attorneys General Carolyn
Fast and Clark Russell, with assistance from Investigator Vanessa Ip,
under the direction of Chief of the Internet Bureau Justin Brookman and
Deputy Attorney General for Economic Justice Michael Berlin.

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