As Consumer Ally previously reported, LifeLock in March reached a $12 million settlement with the FTC and 35 states over charges the company used false claims to promote its identity theft protection services.
LifeLock, the FTC charged, provided less protection against identity theft than promised and made claims about its own data security that were not true."While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it," FTC Chairman Jon Leibowitz said in a statement.
The FTC chairman's remark was highlighted by LifeLock's once-unavoidable advertising campaign, which paraded CEO Todd Davis' Social Security number on the sides of trucks to underscore claims of the company's foolproof identity theft services.
Embarrassingly for LifeLock and Davis, as a result of the ad campaign, his identity was stolen 13 times.
In one of the largest FTC/state-coordinated settlements on record, LifeLock and its principals are barred from making deceptive claims and, ironically, required to take more stringent measures to safeguard the personal information they collect from customers.
Claims by LifeLock the FTC and state attorneys general said were false include:
- "By now you've heard about individuals whose identities have been stolen by identity thieves ... LifeLock protects against this ever happening to you. Guaranteed."
- "Please know that we are the first company to prevent identity theft from occurring."
- "Do you ever worry about identity theft? If so, it's time you got to know LifeLock. We work to stop identity theft before it happens."
- "Only authorized employees of LifeLock will have access to the data that you provide to us, and that access is granted only on a 'need to know' basis."
- "All stored personal data is electronically encrypted."
- "LifeLock uses highly-secure physical, electronic, and managerial procedures to safeguard the confidentiality and security of the data you provide to us."
These consumer refund checks can be cashed directly by the recipients. The FTC never requires the payment of money up-front or additional information to be provided before consumers cash their refund checks.