Think twice about rent-to-own computers

PROVIDENCE, R.I. (WPRI) -- The Federal Trade Commission has issued a warning about rent-to-own computers, claiming that secretly-installed software could be used to spy on customers.

Thousands of people have rented computers from rent-to-own companies such as ColorTyme, and they're now learning that they may have been spied on.

Seven rent-to-own companies and a software design firm have agreed to settle FTC charges that they collected data, which enabled their stores to track the location of rented computers without the customer's knowledge.

Call 12 For Action contacted the franchise owner of the Providence ColorTyme store, who admitted to using the spyware in the computers they rented out, but two years ago disabled the program because he was uncomfortable with it.

According to the FTC, some of the data gathered included:

• Social Security Numbers
• Medical Records
• Bank Statements
• Pictures of Children
• Pictures of Partially Undressed Individuals
• Intimate Activities at Home

The FTC says the software contained a kill switch that rent-to-own stores could use to disable a computer if it was stolen or if a renter failed to make payments.

"It's my business, my personal information, they have my information anyway from renting from them, they don't need to spy on you," said ColorTyme customer John Quinn.

The settlement bans the software company and the rent-to-own stores from using monitoring software, and it bans them from using deception to gather any information from its customers.