FTC Sends Checks Totaling More Than $31 Million to LifeLock Customers

FTC Sends Checks Totaling More Than $31 Million to LifeLock Customers

WASHINGTON, D.C. — The Federal Trade Commission will begin sending refund checks totaling more than $31 million as part of a previously announced settlement with LifeLock, Inc., related to allegations that the identity theft protection provider violated a 2010 Commission data security order.

The refunds stem from a 2015 settlement LifeLock reached with the Commission, which alleged that from 2012 to 2014 LifeLock violated an FTC order that required the company to secure consumers’ personal information and prohibited it from deceptive advertising.

The FTC alleged, among other things, that LifeLock failed to establish and maintain a comprehensive information security program to protect users’ sensitive personal information, falsely advertised that it protected consumers’ sensitive data with the same high-level safeguards used by financial institutions, and falsely claimed it provided 24/7/365 alerts “as soon as” it received any indication a consumer’s identity was being used.

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Under the terms of the FTC’s 2015 settlement with the company, LifeLock agreed to pay $100 million—$68 million of which was set aside to provide refunds to consumers who were part of a class-action lawsuit that made similar allegations to the ones outlined in the FTC’s complaint. The settlement also stipulated that any money not received by consumers in the class action settlement or through settlements between LifeLock and state attorneys general would go to the FTC to provide consumer refunds.

The class-action settlement paid more than $67 million to class action consumers. The FTC is using the remaining money to provide refunds to consumers who were LifeLock members between 2012 and 2014, but did not receive a payment from the class action settlement.

The FTC is mailing more than one million checks averaging about $29. Recipients should deposit or cash checks within 60 days. The FTC never requires people to pay money or provide account information to cash a refund check.

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Consumers who have questions about the refunds should contact the FTC’s refund administrator, Rust Consulting, Inc., at 1-866-898-5106. To learn more about the FTC’s refund programs, visit www.ftc.gov/refunds.

The Federal Trade Commission works to promote competition and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

Source: Federal Trade Commission

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