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LifeLock pays $12M for misleading advertising
LifeLock, the company that sells identity theft services, recently reached a $12 million settlement with the Federal Trade Commission and 35 states — including Ohio — for misleading advertising.
Under fire were LifeLock’s advertisements that “guaranteed” protection of consumers’ personal information.
According to the Office of Ohio Attorney General Richard Cordray, the FTC and the states began jointly investigating LifeLock amid allegations that the company made a range of deceptive claims that misled consumers to believe its services were a “proven solution” that would protect against all forms of identity theft, including criminal, mortgage and child identity theft.
As noted by Wallet Pop, FTC Chairman Jon Leibowitz said in a statement: “While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it.”
Under the agreement, Cordray’s office said LifeLock is prohibited from misrepresenting that its services:
— Protect against all types of identity theft.
— Constantly monitor activity on each of its customers’ credit reports.
— Always prompt a call from a potential creditor before a new credit account is opened in the customer’s name.
— Eliminate the risk of identity theft.
LifeLock also is prohibited from overstating the risk of identity theft to consumers, including whether a particular consumer has become or is likely to become a victim.
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