FTC, LifeLock settlement could reach $116 million
LifeLock announced it has reached a tentative settlement with the Federal Trade Commission.
The Identity theft protection firm LifeLock and the Federal Trade Commission (FTC) announced that they have reached a tentative settlement that should close out a five-year-long case over alleged deceptive business practices.
As part of the deal LifeLock has set aside $116 million, although the amount to be paid out has not been finalized, the company said.
“Federal Trade Commission staff has filed a motion to stay its federal court proceedings against LifeLock to give the Commission time to consider a proposed settlement,” Jay Mayfield, senior public affairs specialist at the commission, told SCMagazine.com in an email Friday.
The situation arose in 2010 when the FTC and 35 state attorney's general charged LifeLock with making deceptive claims regarding its identity theft protection services. In March 2010 LifeLock agreed to a $12 million settlement with almost one million LifeLock customers being entitled to refund checks under the agreement; however, in July 2015 the FTC had to take action against the company stating it had violated its 2010 agreement by continuing to to lie about its protection protocols and failing to adopt stricter security measures.The FTC then asked the U.S. District Court for the District of Arizona to impose an order to require LifeLock to compensate all customers affected by the violation.
LifeLock said the tentative settlement with the FTC does not require the company to change its current product lineup, services, advertising or marketing practices.