WASHINGTON (Legal Newsline) – The Federal Trade Commission (FTC) has reached a $100 million agreement with LifeLock over contempt charge allegations.
In 2010, a federal court order required Lifelock to secure its consumers’ personal information. The order also banned the company from false advertising. Under the new contempt charges, the FTC claimed that LifeLock violated these orders. The result is a $100 million settlement.
“This settlement demonstrates the Commission’s commitment to enforcing the orders it has in place against companies, including orders requiring reasonable security for consumer data,” FTC Chairwoman Edith Ramirez said. “The fact that consumers paid Lifelock for help in protecting their sensitive personal information makes the charges in this case particularly troubling.”
The FTC alleged that Lifelock’s security was subpar. Under the claim filed, LifeLock’s security program allegedly wasn’t enough to protect sensitive personal information including Social Security numbers, credit card information and bank account numbers.
The allegations didn’t stop there. The FTC claimed that LifeLock falsely advertised this security system. LifeLock allegedly marketed its system by saying it was as secure as a financial institution. Additionally, claims stated that LifeLock falsely advertised the fact that it would send immediate notice to customers of any security breach.
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