LifeLock is paying a record-breaking $100 million settlement

Remember those LifeLock commercials where CEO Todd Davis would publicly display his own Social Security number to demonstrate the company’s ability protect customers form identity theft? Well, the fact that Davis has had his identity stolen more than a dozen times should have alerted people to the fact that LifeLock isn’t nearly as effective as it claims. In fact, its inability to protect its customers as advertised is so bad that the federal regulators are forcing the company to pay a $100 million settlement for failing to protect the data of its users and falsely advertising its ability to do so. According to the FTC, this is the largest settlement ever won for that particular type of enforcement case. 

LifeLock is paying $100 million to settle charges by federal regulators that it failed to take adequate measures to protect customers’ personal data under a court order. The Federal Trade Commission announced the settlement Thursday with the provider of identity-theft protection. The agency says it’s the largest settlement it has won in this type of enforcement case. The 2010 order by a federal court required LifeLock Inc. to secure customers’ data, such as credit card and Social Security numbers, and to avoid false advertising claims. The order resulted from an action brought by the FTC and attorneys general in 35 states, alleging that LifeLock used false claims to promote its services. The company paid $12 million in that settlement, which went mostly to customer refunds, and agreed to make changes to its business practices. The FTC said that LifeLock violated the order by failing to maintain “a comprehensive information-security program” and to avoid deceptive advertising. LifeLock is based in Tempe, Arizona. Company co-founder and CEO Todd Davis used to put his own Social Security number on business cards and company trucks to advertise LifeLock’s services.