Lifelock fraud alert firm to pay $12M to settle false advertising suit filed by FTC, states
By APTuesday, March 9, 2010
Lifelock fraud alert firm to pay $12M in ad suit
PHOENIX — An Arizona company that promised to protect consumers from identity theft has agreed to pay $12 million to settle false advertising claims brought by the Federal Trade Commission and 35 states.
Tempe, Ariz.-based Lifelock 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.
Lifelock agreed on Tuesday to pay $11 million in restitution to customers and $1 million to pay for the investigation.
The FTC and the Arizona Attorney General’s office says Lifelock agreed to stop saying it protects against all types of identity theft.
