You have seen their ads on TV but I suspect those ads are now being removed or possibly re-written extensively. The Federal Trade Commission announced that identity protection company LifeLock will pay $100 million for playing fast and loose with its customers’ sensitive information, including names, social security numbers, credit card numbers, and bank information.
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.
It is also amusing that the company’s chief executive had his identity stolen more than a dozen times.
The settlement is the largest payout the FTC has ever won through an enforcement action. Customers who were part of a class-action suit against the company will get $68 million of that. The remainder of the sum “will be provided to the FTC for use in further consumer redress,” the FTC’s press release states.
Details may be found at http://goo.gl/HypCqg.