BREAKING NEWS: FTC, 35 State Attorney Generals, Reach $12 Million Settlement with LifeLock

FTC Chairman Jon Leibowitz and Illinois Attorney General Lisa Madigan announced $12 million settlement with LifeLock for deceptive advertising.

Leibowitz made it clear the settlement represents all the company’s cash reserves to compensate more than a million LifeLock consumers. Leibowitz and Madigan called LifeLock’s advertising campaign and CEO Todd Davis “shameless” for exploiting consumer fear about identity theft.

“No service can provide 100 percent protection against identity theft,” said Madigan. She said LifeLock offered no protection against the most common type of fraud – existing account fraud. Ironically, Madigan received a
direct mail piece from LifeLock stating she was at risk of identity theft.

“As a nonprofit committed to helping consumers, we’ve been worried about LifeLock’s ads for a long time because we felt they were misleading,” said ITAC President Anne Wallace. “We’re happy the FTC has taken action to protect consumers.”