settled yesterday with the Federal Trade Commission on allegations of "capturing screenshots of confidential and personal information, logging their computer keystrokes, and in some cases taking webcam pictures of people in their homes." The companies allowed buyers to rent-to-own the computers, and the software may have collected information on as many as 420,000 customers.
The software installed on the computers allowed a store to remotely disable the computer if it was stolen or if payments were not properly made. It also allowed location tracking, webcam activation, and collected a large amount of data including usernames, passwords, and SSNs.
The settlement forbids the companies to continue to use such software. They are allowed to continue location tracking but only with consent and notice.
The FTC's complaint is available here.
Thanks to Professor Chris Hoofnagle for the link.