Lifelock to pay millions to settle false advertising claims
By KOMO Staff & News ServicesA company that promised to protect consumers from identity theft has agreed to pay $12 million to settle false advertising charges brought by the Federal Trade Commission and 35 states, including Oregon and Washington. MultimediaRelated ContentLifelock Inc. has heavily advertised its $10 per month fraud protection service for several years, promising that it was a "proven solution" that would protect consumers from fraud. Its president, Todd Davis, is famous for plastering his Social Security number on Lifelock ads to show how safe he feels from identity theft. On Tuesday, Lifelock agreed to pay $11 million in restitution to customers and $1 million to pay for the investigation. The Washington State Attorney General's Office said Lifelock has agreed to stop saying it protects against all types of identity theft. "The states and Federal Trade Commission picked apart LifeLock's claims and alleged the company couldn't deliver on its promises," Attorney General Rob McKenna said in a statement. "Today's agreement deadbolts LifeLock's ability to claim its services eliminate the risk of identity theft." McKenna's office said the state will be notifying Lifelock customers who are eligible for a portion of the settlement money. Details are available at http://www.ftc.gov/lifelock or by calling 202-326-3757. LifeLock said it would abide by the terms of the settlement and intends to continue offering identity protection services. "We welcome federal and state efforts to regulate our industry because, at the end of the day, doing so helps to protect consumers from the risks of identity theft," the company said in a statement. If you want to check your credit report, you can get three free reports each year by visiting https://www.annualcreditreport.com/. |
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February 8, 2012
- Coos Bay / North Bend, Oregon
