Micro Bill Systems
Encyclopedia
Micro Bill Systems, also known as MicroBillSys, MBS and Platte Media, is an online collection service with offices in Leeds
, England
, considered to be malware
. The company states that it is a professional billing company offering "software management solutions that can aid your business in reducing uncollectable payments."
The company's best-known clients are online gambling
and pornography
sites offering three-day free trials of their subscription-based services.
If users do not cancel during the trial period, the MBS software begins a repeating cycle of full-screen pop-up windows warning users that their account is overdue and demanding payment.
The eleven-page MBS end-user license agreement
contains a clause stating that unless the bill is paid, the software will disrupt computer use longer each day, with up to four daily periods of 10 minutes when the pop-up payment demand is locked and cannot be closed or minimized.
Users have complained about the unexpected bills, feel victimized, and deny ever accessing the video sites they are being billed for.
MBS denies installing its software by stealthy means and says that the software is downloaded by consent.
Many consumers are unaware that they have agreed to the download.
Security software company Symantec
describes MicroBillSys as a potentially unwanted application
that uses aggressive billing and collection techniques to demand payment after a three-day trial period, and says that there are reports of these techniques leaving the computer unable to browse the Internet.
. This identifier permits MBS to maintain a history of user access to supported sites and to send billing notices directly to the user's computer without the consumer ever having entered a name, credit card number, or other personal information.
The billing notices take the form of repeating pop-up windows warning users that their account is overdue and demanding payment for a 30-day subscription. Typical amounts are ₤19.95 (US$35.00) or ₤29.95 (US$52.50).
The pop-ups cover a substantial area of the screen and often cannot be closed, effectively preventing use of the computer for up to ten minutes. Their number and frequency increases over time, and to stop them consumers must pay. According to the company's terms and conditions
, the agreement can be canceled and the software uninstalled only when no balance is outstanding.
For some who don't pay, Platte sends letters addressed to "the computer owner" threatening legal action in small claims court
. The letters, described by one recipient as a "sham county court notice", include a "pre submission" information form which could mislead the unwary into thinking it comes from "Issuing Court Northampton County Court". It is unclear how Platte derives street addresses from IP addresses for these mailings, as ISPs
interviewed deny providing such information. By filling out the information form and returning it, users provide Platte with their full name in addition to their correct mailing address. Similarly, users who complain to Platte by email or telephone are asked for their names and addresses so that uninstall codes can be mailed out. Payment demands follow. More recently, Platte has been using a debt collection agency to try to pressurise people into making payments. In these cases, a charge is added to the 'subscription'.
web sites. After being acquired by Platte Media (Platte International) in early 2008, the company expanded to include the promise of access to Hollywood movies from Getfilmsnow. Film studios Warner Bros.
and 20th Century Fox
have sent Getfilmsnow a cease and desist
order, and say they have not licensed the films Platte is advertising.
While Platte's website presents the company as a mainstream media distribution company, an interview on the Radio Four programme "You and Yours" with ex-managing director of MBS, Ashley Bateup, indicates that the bulk of the full videos on the site are either black and white, or of a pornographic nature.
(OFT), charged with promoting and protecting consumer interests in the UK, received
numerous complaints about the pop-up payment demands from consumers who said they had not realized they were agreeing to be billed. A number of them stated
that the pop-up software had been downloaded without the computer having been used to access an MBS client site.
The OFT said it was acting in the interests of those consumers whose access to MBS sites was confirmed,
but it had no legal jurisdiction to deal with the issue of software being downloaded without consent.
There is a consumer forum (MBS/Platte Media Victims Forum) dedicated to the complaints and problems experienced by people who have had difficulties caused by MBS and Platte Media software downloads. http://www.mbsvictims.org.uk/
found no evidence of surreptitious installations. A journalist investigating the complaints called the installation process "unmistakable", with "a download, clicking through screens, and entering a four-digit number." Among the required steps is acceptance of an eleven-page end-user license agreement
that includes the clause:
The company says that when it looks into complaints, usually a member of the household has downloaded the software without reading the terms and conditions, and once the billing pop-ups begin they refuse to admit their use to the computer owner. The owner then assumes that the computer is somehow infected. The company says "Our customer service team's experience is that people seem to move into denial with their spouses or partners when pornography use is at question."
The software is difficult for non-technical users to remove, due in part to its use of mutually protective executable files.
The company says that if the software were easy to remove, many people would not pay for the services already consumed.
.
On 27 March 2008, the OFT announced MBS/Platte Media "undertakings", or pledges, to make the sign-up process more fair and setting limits on the amount of disruption the pop-up payment demands could cause.
The company promised to make clear in the sign-up process that the customer is entering into a contract
, and that billing pop-ups will appear after the trial period ends. They also promised "to provide information about how consumers can have the 'pop-up' generating software uninstalled at any time".
The company promised
to not cause more than 20 pop-ups,
to not cause more than one pop-up in any 24-hour period, and
to not cause pop-ups "beyond the expiry of six weeks after payment has become due".
They also promised
to not cause more than ten locked-open pop-ups, and
to not cause locked-open pop-ups to remain locked for more than 60 seconds.
Payment demands delivered as other than pop-up windows are not restricted.
A local authority in the locale of the MBS Leeds office charged with preventing exploitation of vulnerable consumers, the West Yorkshire
Trading Standards
, has received hundreds of complaints about the pop-ups. A spokesman for the authority said "It is our opinion at this time that the company is operating within the bounds of existing legislation and as such it would be difficult to take any formal legal action against them."
One woman whose family computer was caught up in the pop-up cycle was interviewed in The Guardian
. She wonders, if the company's activities are indeed legitimate as maintained by West Yorkshire Trading Standards, why hasn't pressure been put on the Office of Fair Trading to tighten up the law?
MP raised a question in the House of Commons about the activities of Platte and specifically about the number of complaints that had been received by the OFT and Trading Standards about its activities. In response, he was informed that Platte had ceased trading in the UK with effect from 25 February 2009. No specific reason was given for this withdrawal, but it is fair to assume that the continued resistance by British consumers to what they regarded as an unfair business model must have played a part in its decision, along with the threat of action by HM Revenue concerning possible non-payment of VAT. In an email to Michael Pollitt, the company said it had stopped operating in the UK, and that "Our reasons for this decision and our further intentions are simply related to our original marketing and business model", adding: "Obviously, and just like any other business should and would do, I am making sure that stopping our marketing to the UK Market, is done in such a sensible and orderly manner, that will best preserve the interests of our customers and of our own."
Leeds
Leeds is a city and metropolitan borough in West Yorkshire, England. In 2001 Leeds' main urban subdivision had a population of 443,247, while the entire city has a population of 798,800 , making it the 30th-most populous city in the European Union.Leeds is the cultural, financial and commercial...
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, considered to be malware
Malware
Malware, short for malicious software, consists of programming that is designed to disrupt or deny operation, gather information that leads to loss of privacy or exploitation, or gain unauthorized access to system resources, or that otherwise exhibits abusive behavior...
. The company states that it is a professional billing company offering "software management solutions that can aid your business in reducing uncollectable payments."
The company's best-known clients are online gambling
Online gambling
Online gambling, also known as Internet gambling and iGambling, is a general term for gambling using the Internet.-Online poker:Online poker tables commonly offer Texas hold 'em, Omaha, Seven-card stud, razz, HORSE and other game types in both tournament and ring game structures...
and pornography
Internet pornography
Internet pornography is pornography that is distributed by means of various sectors of the Internet, primarily via websites, peer-to-peer file sharing, or Usenet newsgroups...
sites offering three-day free trials of their subscription-based services.
If users do not cancel during the trial period, the MBS software begins a repeating cycle of full-screen pop-up windows warning users that their account is overdue and demanding payment.
The eleven-page MBS end-user license agreement
Software license agreement
A software license agreement is a contract between the "licensor" and purchaser of the right to use software. The license may define ways under which the copy can be used, in addition to the automatic rights of the buyer including the first sale doctrine and .Many form contracts are only contained...
contains a clause stating that unless the bill is paid, the software will disrupt computer use longer each day, with up to four daily periods of 10 minutes when the pop-up payment demand is locked and cannot be closed or minimized.
Users have complained about the unexpected bills, feel victimized, and deny ever accessing the video sites they are being billed for.
MBS denies installing its software by stealthy means and says that the software is downloaded by consent.
Many consumers are unaware that they have agreed to the download.
Security software company Symantec
Symantec
Symantec Corporation is the largest maker of security software for computers. The company is headquartered in Mountain View, California, and is a Fortune 500 company and a member of the S&P 500 stock market index.-History:...
describes MicroBillSys as a potentially unwanted application
Privacy-invasive software
Privacy-invasive software is a category of computer software that ignores users’ privacy and that is distributed with a specific intent, often of a commercial nature. Three typical examples of privacy-invasive software are adware, spyware and content hijacking programs.- Background :In a...
that uses aggressive billing and collection techniques to demand payment after a three-day trial period, and says that there are reports of these techniques leaving the computer unable to browse the Internet.
Operation
When a user first accesses an online service whose collections are managed by MBS, the sign-up software creates a unique identifier based on the user's computer configuration and IP addressIP address
An Internet Protocol address is a numerical label assigned to each device participating in a computer network that uses the Internet Protocol for communication. An IP address serves two principal functions: host or network interface identification and location addressing...
. This identifier permits MBS to maintain a history of user access to supported sites and to send billing notices directly to the user's computer without the consumer ever having entered a name, credit card number, or other personal information.
The billing notices take the form of repeating pop-up windows warning users that their account is overdue and demanding payment for a 30-day subscription. Typical amounts are ₤19.95 (US$35.00) or ₤29.95 (US$52.50).
The pop-ups cover a substantial area of the screen and often cannot be closed, effectively preventing use of the computer for up to ten minutes. Their number and frequency increases over time, and to stop them consumers must pay. According to the company's terms and conditions
Terms of service
Terms of service are rules which one must agree to abide by in order to use a service. Unless in violation of consumer protection laws, such terms are usually legally binding...
, the agreement can be canceled and the software uninstalled only when no balance is outstanding.
For some who don't pay, Platte sends letters addressed to "the computer owner" threatening legal action in small claims court
Small claims court
Small-claims courts have limited jurisdiction to hear civil cases between private litigants. Courts authorized to try small claims may also have other judicial functions, and the name by which such a court is known varies by jurisdiction; it may be known as a county or magistrate's court...
. The letters, described by one recipient as a "sham county court notice", include a "pre submission" information form which could mislead the unwary into thinking it comes from "Issuing Court Northampton County Court". It is unclear how Platte derives street addresses from IP addresses for these mailings, as ISPs
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
interviewed deny providing such information. By filling out the information form and returning it, users provide Platte with their full name in addition to their correct mailing address. Similarly, users who complain to Platte by email or telephone are asked for their names and addresses so that uninstall codes can be mailed out. Payment demands follow. More recently, Platte has been using a debt collection agency to try to pressurise people into making payments. In these cases, a charge is added to the 'subscription'.
MBS clients
MBS's initial clients were two adult contentInternet pornography
Internet pornography is pornography that is distributed by means of various sectors of the Internet, primarily via websites, peer-to-peer file sharing, or Usenet newsgroups...
web sites. After being acquired by Platte Media (Platte International) in early 2008, the company expanded to include the promise of access to Hollywood movies from Getfilmsnow. Film studios Warner Bros.
Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
and 20th Century Fox
20th Century Fox
Twentieth Century Fox Film Corporation — also known as 20th Century Fox, or simply 20th or Fox — is one of the six major American film studios...
have sent Getfilmsnow a cease and desist
Cease and desist
A cease and desist is an order or request to halt an activity and not to take it up again later or else face legal action. The recipient of the cease-and-desist may be an individual or an organization....
order, and say they have not licensed the films Platte is advertising.
While Platte's website presents the company as a mainstream media distribution company, an interview on the Radio Four programme "You and Yours" with ex-managing director of MBS, Ashley Bateup, indicates that the bulk of the full videos on the site are either black and white, or of a pornographic nature.
Consumer complaints
The UK's Office of Fair TradingOffice of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
(OFT), charged with promoting and protecting consumer interests in the UK, received
numerous complaints about the pop-up payment demands from consumers who said they had not realized they were agreeing to be billed. A number of them stated
that the pop-up software had been downloaded without the computer having been used to access an MBS client site.
The OFT said it was acting in the interests of those consumers whose access to MBS sites was confirmed,
but it had no legal jurisdiction to deal with the issue of software being downloaded without consent.
There is a consumer forum (MBS/Platte Media Victims Forum) dedicated to the complaints and problems experienced by people who have had difficulties caused by MBS and Platte Media software downloads. http://www.mbsvictims.org.uk/
MBS position
MBS denies installing its software by stealthy means, and says that the software is downloaded by consent when users visit an MBS client site. A malware researcher at computer security company PrevxPrevx
Prevx is a computer application designed for the removal of and protection from malware. There are separate real-time and on-demand versions. The software downloads in a few seconds because it is 800 kilobytes. The software can remove low-risk adware for free, but the user has to purchase and enter...
found no evidence of surreptitious installations. A journalist investigating the complaints called the installation process "unmistakable", with "a download, clicking through screens, and entering a four-digit number." Among the required steps is acceptance of an eleven-page end-user license agreement
Software license agreement
A software license agreement is a contract between the "licensor" and purchaser of the right to use software. The license may define ways under which the copy can be used, in addition to the automatic rights of the buyer including the first sale doctrine and .Many form contracts are only contained...
that includes the clause:
The company says that when it looks into complaints, usually a member of the household has downloaded the software without reading the terms and conditions, and once the billing pop-ups begin they refuse to admit their use to the computer owner. The owner then assumes that the computer is somehow infected. The company says "Our customer service team's experience is that people seem to move into denial with their spouses or partners when pornography use is at question."
The software is difficult for non-technical users to remove, due in part to its use of mutually protective executable files.
The company says that if the software were easy to remove, many people would not pay for the services already consumed.
Undertakings
In response to the complaints, the Office of Fair Trading reviewed the MBS sign-up process and the fairness of its terms and conditionsTerms of service
Terms of service are rules which one must agree to abide by in order to use a service. Unless in violation of consumer protection laws, such terms are usually legally binding...
.
On 27 March 2008, the OFT announced MBS/Platte Media "undertakings", or pledges, to make the sign-up process more fair and setting limits on the amount of disruption the pop-up payment demands could cause.
The company promised to make clear in the sign-up process that the customer is entering into a contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
, and that billing pop-ups will appear after the trial period ends. They also promised "to provide information about how consumers can have the 'pop-up' generating software uninstalled at any time".
The company promised
to not cause more than 20 pop-ups,
to not cause more than one pop-up in any 24-hour period, and
to not cause pop-ups "beyond the expiry of six weeks after payment has become due".
They also promised
to not cause more than ten locked-open pop-ups, and
to not cause locked-open pop-ups to remain locked for more than 60 seconds.
Payment demands delivered as other than pop-up windows are not restricted.
Statements by authorities
In announcing the MBS undertakings, the Office of Fair Trading's Head of Consumer Protection said "We believe that [the undertakings] achieve the right balance between protecting consumer interests without stifling innovation in the 'on-line' market place."A local authority in the locale of the MBS Leeds office charged with preventing exploitation of vulnerable consumers, the West Yorkshire
West Yorkshire
West Yorkshire is a metropolitan county within the Yorkshire and the Humber region of England with a population of 2.2 million. West Yorkshire came into existence as a metropolitan county in 1974 after the passage of the Local Government Act 1972....
Trading Standards
Trading Standards Institute
The Trading Standards Institute is the professional association which represents trading standards professionals in the UK and overseas.-History:...
, has received hundreds of complaints about the pop-ups. A spokesman for the authority said "It is our opinion at this time that the company is operating within the bounds of existing legislation and as such it would be difficult to take any formal legal action against them."
One woman whose family computer was caught up in the pop-up cycle was interviewed in The Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
. She wonders, if the company's activities are indeed legitimate as maintained by West Yorkshire Trading Standards, why hasn't pressure been put on the Office of Fair Trading to tighten up the law?
Shutdown in the UK
On 9 March 2009, and following a protracted letterwriting campaign conducted by the Platte/MBS Victims Forum Martin HorwoodMartin Horwood
Martin Charles Horwood is a British Liberal Democrat politician. He is the Member of Parliament for the Cheltenham constituency. He is the founder and current Chairman of the All-Party Parliamentary Group for Tribal Peoples.-Early life:He was born in St. Paul’s, Cheltenham, in 1962. His parents...
MP raised a question in the House of Commons about the activities of Platte and specifically about the number of complaints that had been received by the OFT and Trading Standards about its activities. In response, he was informed that Platte had ceased trading in the UK with effect from 25 February 2009. No specific reason was given for this withdrawal, but it is fair to assume that the continued resistance by British consumers to what they regarded as an unfair business model must have played a part in its decision, along with the threat of action by HM Revenue concerning possible non-payment of VAT. In an email to Michael Pollitt, the company said it had stopped operating in the UK, and that "Our reasons for this decision and our further intentions are simply related to our original marketing and business model", adding: "Obviously, and just like any other business should and would do, I am making sure that stopping our marketing to the UK Market, is done in such a sensible and orderly manner, that will best preserve the interests of our customers and of our own."