LifeLock has been fined $100 million by the US Federal Trade Commission (FTC) – the largest data settlement ever. LifeLock, which has headquarters in Tempe, Arizona, United States, offers a range of services that protect users from identity theft protection and credit card fraud.
LifeLock charges customers a monthly subscription (starting at $10) and offers a “$1 million” guarantee on services that detect possible issues, alert users of such issues, and restore data if issues materialize. The company claims to “monitor over a trillion data points a day” using its proprietary solutions. It agreed to pay the fine for not adhering to a court order issued in 2010 that forbad LifeLock from engaging in “deceptive advertising” and requiring the company to ensure customers’ personal data was safe.
"This settlement demonstrates the Commission's commitment to enforcing the orders it has in place against companies, including orders requiring reasonable security for consumer data," explained Edith Ramirez, Chairwoman of the FTC. "The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling."
In response to the FTC’s ruling LifeLock’s website suggested the following: “The advertising and security allegations raised by the FTC were historical in nature, and the settlement does not require us to change any of our current products or practices. It’s important to note that the FTC did not allege, or offer any evidence, that LifeLock has ever had its customers’ data stolen.”
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