LifeLock agrees to pay $100 million for allegedly violating FTC order

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Have you ever wondered what happens when a company is charged with violating a settlement order with the FTC? Well, ya got trouble. I mean trouble with a capital “T”. And for LifeLock, that trouble comes partly in the form of full refunds of up to $100 million for consumers affected by its alleged order violations.

Let me set the stage. In 2010, LifeLock agreed to settle charges with the FTC and 35 state attorneys general that it used false claims to promote its identity theft protection services. The settlement required Lifelock to:

  • stop making deceptive claims;
  • strengthen measures to safeguard the personal information it collects from customers; and
  • pay the FTC $11 million for consumer refunds.

It’s five years later and what do we have? Broken promises and injured consumers. According to the FTC, LifeLock violated the 2010 FTC settlement order by:

  • from at least October 2012 through March 2014, failing to establish and maintain a comprehensive information security program to protect its customers’ sensitive personal information, including credit card, Social Security, and bank account numbers;
  • during that period falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions;
  • falsely advertising that it would send alerts “as soon as” it received any indication that a consumer may be a victim of identity theft from January 2012 through December 2014; and
  • failing to meet the 2010 order’s recordkeeping requirements.

If you’re concerned about protecting your personal information, you may consider paying for identity theft protection services. But before you pay any fees, evaluate the company and its track record. Type the name of the company or product into a search engine along with words like “review,” “complaint,” or “scam.” Be sure to read a few reviews — don’t rely on just one source. Or, you may decide to take matters into your own hands by reviewing your credit reports on a regular basis or placing a credit freeze on your report.

For more information about protecting your personal information, visit our Privacy & Identity page. If you want help recovering from identity theft, visit IdentityTheft.gov.

Comments

The bottom line is this that the consumers should do their homework first before paying money to the companies like LifeLock. I just wonder how effective the three credit bureaus are in protecting our information. What options do we have in case their database is hacked and all the sensitive information is stolen? Who will protect us then?

Looks like LifeLock is still up to deceptive practices, FTC. As an investor performing due diligence on the Investor Relations page of their website, they show they're accredited with the BBB. Cross referencing against the BBB's site, LifeLock is NOT an accredited business. Apparently they haven't learned their lesson. These people should not be in business.

I signed up for my life thinking it could help me monitor things. I quickly realized this was a scam, but when I tried to cancel they had already charge me 119.00 for my year subscription, but sent me a receipt for 1.00 at the trial price I believd I was getting. How can they monitor my credit when they didn't even know my new address.

They are still spamming people. Please make them stop.

Just got my check today!! 20 bucks but was a nice surprise in mail.

When I had them for a year back in 2014 they noticed me that my personal information had been detected on a black market website. I called up their customer service to find out specifically where it was found but they wouldn't tell me. I asked him why they were protecting the identit of the site since I was the one paying them. Shortly thereafter I cancelled my account because all they suggested to me was to change my password....thanks, never thought of doing that.

What if I opted out? can i still get some money back?

I also applied for HELOC and no notification. I called them to ask why wasn't this reported and they did not have a reason for this. Ripoff!

They suck. PERIOD!

I never received notice of the class action suit. I received a check in the mail for $19 dollars and change which led me to do a google search on the case. Just finding out now about all of this. I'm so disappointed to learn. I paid my Lifelock membership on an annual basis nearly $400 a year for each myself and my husband via my credit card. The renewal just occurred in August 2016. I now want to cancel and am wondering if I should call my credit card company (I have purchase protection) and report the situation to be refunded. I also will be calling Lifelock to cancel. Now that all my personal information was provided to Lifelock what is the best way to remove it?

Please ask Lifelock customer service about removing your name and personal information from their files and system.

Just received my check the other day for $19.48 . Just wondering if anyone else had trouble separating the check form the address info on the front. I'm unable to do it. Wondering if anyone else had this issue. Hoping it's not a SCAM check to get your bank info. Going to check with my bank 1st .

I just received checks in the mail for my kids because they must have been subclass members. I was never notified of this lawsuit. Is it too lat le for me to submit a claim? Why was I not notified?!

Never received any information about the suit either. Got a check for $19.48. Guess someone saved "Life-Suck" some money by not notifying all the members of the eligible "classes".

I called them to check on why they hadn't kept my debit card from being used FOUR TIMES in two weeks! I dialed the 800 customer service number and was redirected to a "YOU JUST WON A FREE CRUISE" line! I swear! I hung up and tried again...same thing! All I had to do was answer a few short survey questions about Lifelock! You have GOT to be kidding me???? So I complained. I complained to BBB! The only time ever that BBB didn't help me with a company! So I guess we know whose in their pockets! Needless to say I was done with Lifelock!

Just got a $134 check in the mail, very nice surprise!

Me too, anyone know what its for? This is in addition to the $39 in 2014.

Me too! When I had Lifelock years ago it was for a free year, now a check...nice

Where does the other 32 million dollars go to?

Got a $134 check, cashed it and got a notice from the bank of a stop payment and bad check charge! Great settlement.......

Before reading any of this, I see in their ads lately that they say: "We scan hundreds of millions of credit transactions per second". NOBODY scans that amounts of transactions PER SECOND". No way.

Has anyone received a settlement claim? Aug 15, 2017

Life lock customer service representative updated my account without my authority and decide to change my primary email address to an email I wasn't associated with. On top of that the representative also turn off my texts alerts so I won't receive the alerts about my transactions and theft reports. I been using lifelock for awhile now and I did not know they treat their customers like this
I requested for a supervisor to call me and I never got call or the legal forms that were supposed to sent to my email.

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