A franchisee of the Atlanta-based Aaron's rental chain denies it knowingly placed software on customers' computers so the company could spy on users.

Aspen Way Enterprises, responding to a federal  lawsuit filed by a Wyoming couple, said vendor DesignerWare of Pennsylvania provided  unsolicited  "detective mode" software that made spying possible on the store's rental computers.

Crystal and Bryan Byrd of Casper sued Aspen Way, Aaron's and DesignerWare in May, claiming Aspen's rental computer contained software that allegedly enabled the store to capture web cam images from their home.

The Byrds are seeking unspecified damages and attorneys’ fees. Federal privacy laws allow for a penalty of $10,000 or $100 per day per violation, plus punitive damages and other costs, the lawsuit said.

In a statement,  Aaron’s denied that any of its 1,140 corporate stores has used the component or done business with the company that produces it. The computer in question was leased from Aspen, an independently owned and operated Aaron’s franchisee, the company said.

“Aaron’s respects its customers’ privacy and has not authorized any of its corporate stores to install software that can activate a customer’s webcam, capture screenshots or track keystrokes,” the company said in the statement.

DesignerWare argues the software is a legal way to shut down computers if customers stop making payments.

The suit contends an alleged cyber-snooping component called PC Rental Agent was soldered or otherwise installed inside a Dell laptop the Byrds leased last year. The device came to light only after the manager of an Aaron’s outlet in Casper came to the couple’s home last December to repossess the laptop.

The manager, who mistakenly believed the Byrds hadn’t paid off the computer, showed the couple a photo taken by the machine’s webcam of the husband using the computer at home, according to the suit that was filed in U.S. District Court in Erie, Pa.

The manager of the store later told the Byrds, according to the suit, that “he was not supposed to disclose that Aaron’s had the photograph.”

Attorneys for Aspen Way Enterprises filed their response to the Byrds' lawsuit in U.S. District Court in Erie on Tuesday.

The Associated Press and AJC staff writer J. Scott Trubey contributed to this article.