LifeLock, the industry leading identity theft protection company, recently came to a settlement with their customers as a result of allegations that they made fictitious claims regarding their identity protection services. The settlement is the result of charges by the Federal Trade Commission that LifeLock exaggerated its claims for protection against identity theft.
The FTC claimed that LifeLock misrepresented its services in an advertising promotion where the owner of LifeLock revealed his Social Security number. This implied that criminals should try and steal his identity and suggested that LifeLock provides 100 percent fool-proof protection against identity theft. The advertisement promised to protect customer’s identities for only ten dollars per month. In the process the owner had his identity stolen 13 times.
Actions Taken by FTC
The Federal Trade Commission has started forwarding checks in the amount of $10.87 to LifeLock customers in which they will be granted up to 60 days to cash the checks. Also, as a result of the FTC settlement, LifeLock will be required to tighten security to better protect the personal information of LifeLock Customers. The 12 million dollar settlement forbids LifeLock from making any misrepresentations of their products and services in the future and is one of the largest FTC and state settlements to date.
LifeLock Policy Changes
As a result of the FTC settlement LifeLock has changed some of their policies:
Full Compliance: LifeLock is in full compliance with federal and state guidelines which are set for this type of industry.
New Products and Advertising: During the course of the investigation the Federal Trade Commission reviewed all new LifeLock products and advertising to ensure they are in compliance with FTC regulations.
Ongoing Education: LifeLock will continue to educate consumers and work with the government and law enforcement officials to help minimize identity theft.
LifeLock’s Future Plans
LifeLock has proceeded to implement the changes requested by the Federal Trade Commission well in advance of the settlement and the refund distribution to LifeLock customers. The company plans to move forward and continue to optimize its products and services for consumer protection against identity fraud.
During 2010 LifeLock was recognized for its identity theft protection services in ten different award programs. According to Business Wire, Inc. Magazine LifeLock was ranked 8th on the Inc. 500 List which is a distinguished ranking for the fastest growing private company. LifeLock was also ranked number one in the Security category for Inc. 500. LifeLock Identity Alert which is a security product was recognized as the Best New Product or Service of the Year at the 2010 American Business Awards.
LifeLock has also partnered with the FBI Law Enforcement Executive Development Association to develop a program designed to educate law enforcement across the US on identity fraud.
For more information on Lifelock’s services read our in-depth Lifelock review.