LifeLock pays $100 million settlement over false advertisement and weak data security.
All human beings have identities, so anyone can be vulnerable to identity theft. As a result, several companies have formed to help users protect their identities. LifeLock is one of these companies. LifeLock is among the most recognized ID theft monitoring services on the market. Its ads can be seen on television, in magazines, and across social media. But according to the Federal Trade Commission (FTC), LifeLock is guilty of false advertisement. The company claimed to secure customer data when they lacked the systems to do so. This put LifeLock in violation of a 2010 court order. The order mandated that LifeLock take necessary precautions to protect consumers’ private information. Data such as names, SSN, and banking information was not being properly encrypted. But from 2012 to 2014, the company continued advertising the same security claims despite the court order.
On December 17, 2015, LifeLock agreed to pay $100 million in settlement with the FTC. The settlement reiterates the order to stop dishonest ads and to set up comprehensive data security. LifeLock said that they are already meeting the terms of the order. “The allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place,” the company said.
The settlement money will be used to refund customers involved in a class-action lawsuit against the company. Customers not involved in the class-action will also be eligible for reimbursements under a part of the settlement. Additionally, LifeLock will be undergo continued monitoring and audits until the year 2023.