LifeLock paying $100M to consumers to settle US charges

23 Dec 2015 | Author: | No comments yet »

LifeLock Agrees to Pay $100 Million Fine in Settlement With F.T.C..

WASHINGTON (AP) — LifeLock is paying $100 million to consumers to settle charges by federal regulators that it failed to take adequate measures to protect customers’ personal data under a court order.LifeLock, an identity protection service, agreed to a $100 million settlement with the Federal Trade Commission for failing to deliver on promises it would guard personal data and inform users when their information was breached. The FTC had accused LifeLock, which is based in Tempe, Arizona, of violating a 2010 court order that required it to take steps to secure data properly and said that LifeLock falsely advertised that it protected that information, among other allegations.

The 2010 order by a federal court required LifeLock Inc. to secure customers’ data, such as credit card and Social Security numbers, and to avoid false advertising claims. In 2010, the F.T.C. charged the company with failing to provide strong security measures for personal data. “The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling,” Edith Ramirez, the F.T.C. chairwoman, said in a statement. The order resulted from an action brought by the FTC and attorneys general in 35 states, alleging that LifeLock used false claims to promote its services. The company charges $9.99 per month to monitor a customers’ accounts to get an early warning of identity theft and to help them clean up the mess when identity theft occurs. Company co-founder and CEO Todd Davis used to put his own Social Security number on business cards and company trucks to advertise LifeLock’s services.

Maureen Ohlhausen, the sole Republican on the panel, said in her dissent that she was unconvinced that LifeLock had fallen short in protecting its customers data. In the settlement announced Thursday, the FTC said LifeLock also didn’t properly establish internal policies to protect consumer data from cyberattacks or leaks.

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