“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,” said FTC Chairman Jon Leibowitz, when announcing the $12 million settlement between LifeLock, Inc. and the FTC.
According to the FTC’s press release, Lifelock “will pay $11 million to the Federal Trade Commission and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck.”
The case represents one of the biggest FTC-state coordinated settlements on record and a tremendous win for consumers.
Errant industry players have been put on notice that product claims of internet safety and privacy had better measure up. And protects consumers mislead by the false claims.
“This agreement effectively prevents LifeLock from misrepresenting that its services offer absolute prevention against identity theft because there is unfortunately no foolproof way to avoid ID theft,” Illinois Attorney General Lisa Madigan said. “Consumers can take definitive steps to minimize the chances of having their personal information stolen, and this settlement will help them make more informed decisions about whether to enroll in ID theft protection services.”
Hats off to the FTC and the participating attorneys general.