LifeLock Will Pay $12 Million to Settle Charges by the FTC and 35 States

[security curmudgeon <jericho () attrition org>]

http://www.databreaches.net/?p=10553

LifeLock Will Pay $12 Million to Settle Charges by the FTC and 35 States 
That Identity Theft Prevention and Data Security Claims Were False

March 9, 2010 by admin

LifeLock, Inc. has agreed to pay $11 million to the Federal Trade 
Commission and $1 million to a group of 35 state attorneys general to 
settle charges that the company used false claims to promote its identity 
theft protection services, which it widely advertised by displaying the 
CEO.s Social Security number on the side of a truck.

In one of the largest FTC-state coordinated settlements on record, 
LifeLock and its principals will be barred from making deceptive claims 
and required to take more stringent measures to safeguard the personal 
information they collect from customers.

.While LifeLock promised consumers complete protection against all types 
of identity theft, in truth, the protection it actually provided left 
enough holes that you could drive a truck through it,. said FTC Chairman 
Jon Leibowitz.

.This agreement effectively prevents LifeLock from misrepresenting that 
its services offer absolute prevention against identity theft because 
there is unfortunately no foolproof way to avoid ID theft,. Illinois 
Attorney General Lisa Madigan said. .Consumers can take definitive steps 
to minimize the chances of having their personal information stolen, and 
this settlement will help them make more informed decisions about whether 
to enroll in ID theft protection services..

Since 2006, LifeLock.s ads have claimed that it could prevent identity 
theft for consumers willing to sign up for its $10-a-month service.

[..]
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