ERIE, Pa. (CN) - A federal judge denied a preliminary injunction sought by a Wyoming couple who claim Aaron's, one of the nation's largest rental chains, surveiled customers through spyware on rent-to-own computers.
Crystal and Brian Byrd, on behalf of a proposed class of consumers who rented or bought computers from Atlanta-based Aaron's, asked that the company be ordered to stop using certain features on the software at issue, PC Rental Agent, while the dispute plays out in court.
The Byrds say the spyware is part of the software's Detective Mode, which Aaron's uses surreptitiously and illegally to take screenshots, capture keystrokes and other information from consumers, presumably to deal with customers who are delinquent on rental payments.
In mid-June, a magistrate said the request should be denied, finding that the Byrds failed to prove that the class faces irreparable future harm in the absence of an injunction.
Any harm the Byrds may have suffered can be redressed at trial, U.S. Magistrate Susan Baxter found.
"Evidence in support of the irreparable harm prong is scant, at best. The evidentiary record before this Court reflects that plaintiffs' [rented] laptop computer is no longer in their possession. Hence, plaintiffs are not presently suffering any harm necessary to support the requested relief of the suspension of the Detective Mode of the PC Rental Agent," Baxter wrote.
"It is purely conjecture that the other members of the putative class will be subjected to remote access of personal information," she added.
While the proposed class members, unlike the Byrds, may still have their rented computers, testimony from the co-owner of the company that developed PC Rental Agent, defendant DesignerWare, indicates that use of the software's Detective Mode is more limited than the plaintiffs contend, Baxter found.
U.S. District Judge Sean McLaughlin agreed with that finding, and on July 8 denied the Byrds' request for an injunction.
That decision was music to DesignerWare's ears, as it had said that such an injunction "would be catastrophic to this small, Erie-based business that has already lost approximately 30 percent of its revenue since plaintiffs' complaint was filed."
In an interview with Courthouse News, DesignerWare's attorney David White of Pittsburgh-based Burns White, said: "We had customers who were canceling their use of PC Rental because of the misinformation that was being spread by the plaintiff and we were fearful ... [that it] could have completely put our client out of business."
He added: "Once Judge Baxter was able to hear the whole story and understood the true facts she reached the conclusion ... essentially validating the legality of our software. ...
"Very implicit in her opinion is that the DesignerWare software does not violate any of the wiretap laws."
White noted that his client is not privy to any information allegedly captured by PC Rental Agent.
"DesignerWare doesn't get it at all. It goes to the franchisee stores."
DesignerWare employees "don't see it, look at it, or access it at all," he said.
"I think the fact that there were no objections or appeals [to Baxter's analysis] speaks volumes," he said.