LifeLock settles with FTC for record $100 million

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In its largest settlement ever obtained through an enforcement action, the Federal Trade Commission (FTC) announced yesterday that it had settled with identity theft protection firm LifeLock for $100 million. The no-fault settlement relates to a 2010 FTC enforcement action against LifeLock in which the FTC alleged that LifeLock misrepresented the effectiveness of its products in advertisements and had not properly secured its customers’ information. The 2010 settlement required LifeLock to establish a comprehensive security program and pay a $12 million fine. Earlier this year, the FTC alleged that LifeLock violated the 2010 settlement in several ways, including falsely advertising that LifeLock used the same data protections as financial institutions and that customers would receive immediate notice as soon as LifeLock suspected a potential identity theft. Customers who were part of a class action against LifeLock related to its previous security measures and advertising statements will receive $68 million of the settlement.

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