LifeLock Violated Order by Pushing Deceptive Claims, Says FTC

LifeLock Violated Order by Pushing Deceptive Claims, Says FTC
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July 29, 2015

The Federal Trade Commission (FTC) is claiming that LifeLock is violating an existing agreement by continuing to make deceptive marketing claims.

In 2010, the agency introduced allegations that the security firm used false claims to promote its identity theft protection services. The two parties reached a settlement that barred the company from making any further deceptive claims, required the company to take more stringent measures to safeguard the personal information it collects from customers, and compelled LifeLock to pay $12 million in consumer refunds.

Last week, the FTC charged, in documents filed with the U.S. District Court for the District of Arizona, that LifeLock has failed to live up to these agreed obligations.

The agency's claims of impropriety include: 1) failing to establish and maintain a comprehensive information security program to protect its users' sensitive personal data, including credit card, social security, and bank account numbers; 2) falsely advertising that it protected consumers' sensitive data with the same high-level safeguards as financial institutions; and 3) failing to meet the 2010 order's recordkeeping requirements.

"It is essential that companies live up to their obligations under orders obtained by the FTC," Jessica Rich, Director of the FTC's Bureau of Consumer Protection, said in a written statement. "If a company continues with practices that violate orders and harm consumers, we will act."

Specific details of the FTC's action were filed under seal. The court will determine which portions of the case will be unsealed.