LifeLock to Pay $100 Million to Settle US Deception Claims

23 Dec 2015 | Author: | No comments yet »

Business Watch.

Clayton G. 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. Deutsch, chief executive of Boston Private Financial Holdings Inc., has been named head of the company’s bank, effective Jan. 1, the holding company said Thursday. The jury found that Cox helped contribute to the infringement of BMG copyrights by its Internet subscribers and that Cox’s conduct was “willful.” “We are unhappy with the decision, will review the ruling in detail and are considering our options, including appeal,” said Todd Smith, a spokesman for Cox.

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. In appointing Deutsch to head Boston Private Bank & Trust and giving him a dual role, the company’s board is hoping to streamline management. “This structure is aligned directly with our focus on delivering an integrated and complete client experience,” chairman Stephen M.

The verdict is the first of its kind and could open the door to more lawsuits against the cable industry by movie studios and music publishers, which claim illegal downloading of songs, movies and TV shows have cost them billions in lost revenue in recent years. “We believe this decision sends a message…that [Internet providers] have a responsibility to act upon and limit the massive copyright infringement using their networks that has been brought to their attention,” said Michael Allen, lead counsel for BMG. Waters said in a statement. “It will allow us to move faster on our clients’ behalf and become even more responsive and thoughtful in serving every aspect of our clients’ banking and wealth management needs.” The bank’s current CEO, Mark D. 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 court papers, Cox had said it had no “actual” knowledge of any specific infringements and that the plaintiffs had no evidence of Cox account holders personally infringing through their Cox accounts. 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.

Additionally, the regulators alleged that LifeLock lied to consumers keeping consumer data secure in a similar way to how financial institutions lock up data. 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. Cox also had argued it was shielded from liability by a 1998 law that creates a so-called “safe harbor” from copyright claims for Internet providers so long as they take certain steps, such as investigating claims of illegal downloads by users. The lawsuit targets the practice of downloading music via so-called torrent services, through which a downloader retrieves small bits of data from multiple peers,​with that data then being compiled into a complete file on the downloader’s hard drive. 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.

As part of the 2010 settlement, LifeLock was “barred from making deceptive claims and required to take more stringent measures to safeguard the personal information they collect from customers,” according to an FTC announcement at the time. 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. — BLOOMBERG NEWS DETROIT — Volkswagen’s US unit has hired attorney Kenneth Feinberg (right) to design and administer an independent resolution program for claims related to diesel vehicles that were rigged to cheat emissions tests. Feinberg handled the General Motors Co. ignition-switch settlements, as well compensation funds for victims of the Sept. 11, 2001, terrorist attacks and the BP Gulf oil spill. The world’s largest social network is offering a feature called ‘‘Photo Magic’’ that will automatically address a message so it can be sent quickly to Facebook friends identified in a picture.

In the settlement announced Thursday, the FTC said LifeLock also didn’t properly establish internal policies to protect consumer data from cyberattacks or leaks. With this twist, Facebook is deploying the technology in its Messenger application to make it more convenient to distribute pictures to a few friends and family members. The Wall Street Journal reported in October that the software and consulting firm, which Dell acquired in 2011, filed papers for the IPO over the summer and that a roadshow could take place in the winter.

SecureWorks said in its Form S-1 that it posted an $18.5 million loss for the quarter ended Oct. 30, compared with a loss of $8.8 million a year earlier. — WASHINGTON POST HONG KONG — China’s biggest airline is buying more than 100 Boeing 737s, a deal worth about $10 billion that comes just months after the US plane maker announced plans to build a Chinese finishing plant for the aircraft type. SecureWorks sells managed-security services, online tools that companies can use to keep tabs on their network activity and prevent hackers from breaking into their computer systems.

The order comes nearly three months after Boeing Co. signed a deal with state-owned Commercial Aircraft Corp. of China to build its first final assembly plant in China, for 737 aircraft. — ASSOCIATED PRESS LONDON — British judges ruled that Mirror Group Newspapers must pay record damages to eight phone-hacking victims, saying the papers’ staff engaged in ‘‘disgraceful conduct.’’ Parent company Trinity Mirror PLC, which faces dozens more lawsuits by victims of illegal eavesdropping, said it was increasing the amount it set aside to deal with civil phone-hacking claims to $61 million, from $42 million. The company, which owns the Daily Mirror and Sunday Mirror tabloids, had appealed an earlier ruling that it must pay a total of $1.79 million to eight victims, including actress Sadie Frost and former soccer star Paul Gascoigne. The Federal Communications Commission asked the carriers “to come in and have a discussion with us about some of the innovative things they are doing,” chairman Tom Wheeler said Thursday at a news conference. Under the JOBS Act, companies with revenue below $1 billion are allowed to keep filings confidential until they are ready to market shares to potential investors.

The discussions come amid concern that carriers are treating some data traffic differently, which may conflict with the fairness policies central to so-called Net neutrality rules. Chief Executive John Standley pointed to revenue and same-store sales growth as well as “positive, significant contributions from our new pharmacy services segment.” He said the company strengthened its retail health-care offering by converting additional stores to its wellness format. Last month, Wheller said the FCC would be “keeping an eye on” T- Mobile’s Binge On offer of free data for some online video that doesn’t count against a customer’s limited-data plan. The chain, like rivals, has adjusted its offerings to broaden its business model as the pharmacy and drugstore industry expands into the health and wellness sector. Rite Aid has worked to expand its RediClinics and remodeled 96 wellness stores, which offer organic food and natural personal-care options and feature consultation rooms for discussions with pharmacists.

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