LifeLock Agrees to $116 million Settlement with FTC
Posted by: Timothy Weaver on 11/02/2015 05:01 AM
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LifeLock and the FTC have come to a tentative agreement that will settle a 5 year long legal battle over deceptive business practices.
The settlement is going to cost LifeLock $116 million, although the amount to be paid out has not been finalized.
Jay Mayfield, senior public affairs specialist, 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."
The case came to light in 2010 when the FTC and 35 Attorney's General sued the company over its identity theft protection services, which the plaintiffs alleged deceptive practices. In March of 2010, Lifelock agreed to a settlement of $12 million to be returned to customers. However, in July 2015 the FTC had to take action against the company stating it had violated its 2010 agreement by continuing to lie about its protection protocols and failing to adopt stricter security measures.
The FTC then sued in federal court to make LifeLock compensate all customers.
LifeLock said the tentative settlement with the FTC does not require the company to change its current product lineup, services, advertising or marketing practices.
Source: SCMagazine
The settlement is going to cost LifeLock $116 million, although the amount to be paid out has not been finalized. Jay Mayfield, senior public affairs specialist, 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."
The case came to light in 2010 when the FTC and 35 Attorney's General sued the company over its identity theft protection services, which the plaintiffs alleged deceptive practices. In March of 2010, Lifelock agreed to a settlement of $12 million to be returned to customers. However, in July 2015 the FTC had to take action against the company stating it had violated its 2010 agreement by continuing to lie about its protection protocols and failing to adopt stricter security measures.
The FTC then sued in federal court to make LifeLock compensate all customers.
LifeLock said the tentative settlement with the FTC does not require the company to change its current product lineup, services, advertising or marketing practices.
Source: SCMagazine
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