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July 22, 2015

FTC alleges LifeLock violated terms of 2010 settlement

The Federal Trade Commission filed a lawsuit Tuesday claiming that LifeLock Inc. violated the terms of its 2010 settlement with FTC and 35 state attorneys general and that it continued to make deceptive claims about its identity theft protection services.

The 2010 settlement stemmed from previous FTC allegations that LifeLock used false claims to promote its ID theft protection services. The settlement barred the company from making any further deceptive claims, required LifeLock to take more stringent measures to safeguard the personal information it collects from customers and required LifeLock to pay $12 million in consumer refunds.

FTC's lawsuit was filed with the U.S. District Court for the District of Arizona. FTC alleges that from at least October 2012 through March 2014, LifeLock violated the 2010 order by failing to establish and maintain a comprehensive security program to protect users' sensitive data, falsely advertised that it protected consumers' data with the same high-level safeguards as financial institutions and failed to meet the order's recordkeeping requirements.

The commission also asserted that from at least January 2012 through December 2014, LifeLock falsely claimed it protected consumers' identity 24/7/365 by providing alerts "as soon as" it received any indication there was a problem.

ID theft and data security remain a top concern for NAFCU, which has called for legislation to create national data protection standards.