On March 9, 2010, the Federal Trade Commission announced that LifeLock, Inc., has agreed to pay $12 million to settle charges of deceptive advertising related to its identity theft protection services. The FTC and the attorneys general of 35 states obtained the coordinated settlement pursuant to charges that LifeLock made false representations regarding the effectiveness of the protection its services offer consumers. The FTC alleged that, contrary to assertions made in LifeLock’s advertisements, its products provide no protection from the most common form of identity theft, and only limited protection against other types of fraud.
The FTC’s complaint and further details concerning the settlement are available on the FTC’s website. The FTC also has posted a page to provide information on the redress program for current and former LifeLock customers.
Update: On July 21, 2015, the FTC alleged that LifeLock violated the settlement because it continues to “make deceptive claims about its identity theft protection services.”
Update: On December 17, 2015, the FTC settled contempt charges for deceptive advertising with LifeLock, requiring LifeLock to pay $100 million. The settlement states that $68 million of the total value of the settlement will be paid to class action consumers who were injured by LifeLock’s violation of the 2010 federal court order that required the company to protect consumer information.