FTC’s $100 million settlement with LifeLock: May (en)force be with you

Share This Page

The law may not authorize the use of light sabers, but to protect consumers and ensure that companies comply with existing orders, the FTC will use the forces within its power. It’s a lock that the agency’s $100 million settlement with LifeLock – one of the largest redress orders of its kind – makes that point as big as life.

LifeLock’s first go-round with the FTC and 35 state AGs was in 2010. According to that complaint, LifeLock didn’t live up to identity protection claims it made in its ads. To settle that case, the company agreed to secure customers’ sensitive information and promised not to mislead consumers in the future with deceptive claims about its services.

But as the FTC alleges, LifeLock violated four key provisions of that order. First, the FTC says that from October 2012 through March 2014, LifeLock failed to set up and maintain a comprehensive information security program to protect customers’ sensitive data, including their Social Security, credit card, and bank account numbers. The safety of consumers’ confidential information should be a serious consideration for any business but for a company already under FTC order and in the business of selling identity protection services? You get the point.

Second, the filing charges that during that period, LifeLock falsely advertised that it protected consumers’ sensitive information with the same high-level safeguards as financial institutions. What about the company’s promise it would send alerts “as soon as” it received any indication that a customer may be a victim of identity theft? According to the filing, that ad claim was false, too. Finally, the FTC says LifeLock didn’t live up to the record-keeping provisions of the 2010 settlement, an essential part of any order.

Under the terms of the proposed settlement, the $100 million LifeLock has to pay will go toward consumer refunds. To make sure consumers are protected, the settlement explains in detail how that has to happen. LifeLock must deposit $100 million into the registry of the United States District Court in Arizona. Of that total, the company may use $68 million in settling an ongoing class action lawsuit related to the conduct alleged in the FTC’s filing. But let’s be clear: That money must go directly to consumers. Not one penny can be used for administrative costs or legal fees associated with the class action. Any money not received by consumers in the class action settlement or through settlements between LifeLock and the state AGs will go to the FTC for further consumer redress.

Surprised by the number of zeros in the settlement? You shouldn’t be. There’s not much the FTC takes more seriously than effective enforcement of existing orders. Furthermore, the FTC has made it clear that it won't tolerate deceptive advertising and unreasonable data security practices. Today’s announcement gives companies 100 million more reasons to avoid both courses of conduct.


These Obamanites never get use to going after other peoples money. Government by the Willie Sutton rules of regulation... Just typical Chicago gangsters....

"These Obamanites never get use (sic) to going after other peoples money. Government by the Willie Sutton rules of regulation... Just typical Chicago gangsters...."

Had you chosen to write in English, your point is that the 'Obamanites never TIRE of going after other peoples' money.'
But empowering the less-educated is what the Tea Party is all about.
Your side should build on your numbers and advocate acceptance and use of Teabonics in the public sphere.

Oh, and hurry and fork over your $$ to Lifelock before Obama takes it away from you!

But if your first language is Teabonics, it was

Very reassuring to know the FTC is watching out for consumers and following up on existing orders. Great work!

Give'em hell FTC and thank you for watching out for use consumers I don't think you get the recognition you'll deserve. Thanks

How does a consumer get a refund? I lost close to $7000.00 while I was a Lifelock customer.

how i can does a consumer get a refund?

quite a remarkable incident.

How about going after Herbalie for false advertising that is worse and steals billions from consumers in a disgusting pyramid scheme. Seriously, all it takes is a simple Google search for "work from home" and you'll find THOUSANDS of false income claims. Does the FTC not have access to Google and late night cable TV????

My visa bank card was hacked in September and as of today Life Lock still has not reported to me. $ 1149.00 in 48 hours. It was the bank fraud team that called me and started the investigation and replaced my money declaring it was fraudulent. Life Lock never caught it. Disappointed.

How does someone get on the list to get a refund?

I had issues when I was their customer

How is this if is related about me

I signed up with them and they breached my information and I've been suffering ever since

I want a refund

I was a paying lifelock customer and i was suprised, when i found my name and personal information, on various online sites for anyone to access. Personal info.and account info. Lifelock never protected me and i want a refumd.How does one go about this

I believe lifelock owes me much more than a refund for the failure to protect my identity. My SSN and other financial data had been compromised at least 4 times since 2010. Not once was I advise in writing. I recommend a letter of apology and steps taken to prevent this happening again and a refund of at least half the cost of my yearly premiums

Add new comment

Comment Policy

Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system (PDF), and user names also are part of the FTC’s computer user records system (PDF). We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.