Category Online Social Responsibility

By Bob Sullivan

LifeLock spent millions spreading its CEO’s Social Security Number all across America. Now the firm will spend $12 million settling claims that it engaged in deceptive advertising and failed to protect customers’ personal information.

The Federal Trade Commission and 35 state attorneys general announced on Tuesday that Lifelock is changing its business model to address allegations of unfair and deceptive business practices. 

“They developed a market to capitalize on consumers’ fear,”  FTC Chairman Jon Leibowitz said at a news conference.  “They were exaggerating the service they offered to consumers. This was a fairly egregious case of deceptive advertising.”

Consumers who signed up with the service as early as 2005 — about 1 million customers in all — will be eligible for refunds. The fine is steep for the firm, said Leibowitz.

“We’re taking all the money they had on hand,” he said.

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