If you’re watching TV late at night, you will most likely see commercials about “identity theft” by a company called, LifeLock. The company has bombarded TV and radio for years, scaring vulnerable consumers into thinking if they don’t buy the service, they will pretty much lose everything.
Well, karma is catching up with LifeLock—in a big way. The company has been ordered to pay $100 million in a settlement with the Federal Trade Commission (FTC), namely for “the egregiousness of LifeLock’s actions.” It’s one of the largest fines the FTC has ever issued. The majority of that settlement will go back to the consumers who were scammed by LifeLock. This is not the first time the FTC has gone after LifeLock. Back in 2010, the government agency charged LifeLock for failing to deliver promises that it would protect personal data and inform users with any signs of identity invasion. LifeLock apparently did not learn from that legal $12 million dollar lesson and fine. In 2015, Cecelia Kang with the New York Times reports:
In July, the FTC charged LifeLock with failing to put adequate data protections in place for Social Security numbers and for credit card and bank accounts. The agency said that LifeLock falsely claimed in advertisements that it had security systems that were as strong as those used by financial institutions. The company also failed to fulfill a promise that it would inform users when their data was breached, the agency said.
The company’s stock price fell 49% that month after news hit the financial trades.
The folks working with anti-hate media activist groups like FlushRush, StopRush, and BoycottRush know that LifeLock has been a longtime and loyal sponsor of The Rush Limbaugh Show. The company is included on a Rush Limbaugh Sponsor Petition containing over 140k signatures of concerned consumers active in the national protest against the conservative “king of hate radio.” LifeLock has also been enthusiastically endorsed by the not-so-popular former New York Mayor Rudy Giuliani. Here is one of Giuliani’s commercials championing the company. It’s a 2-minute long commercial. Notice the scare tactics.
Last year, hundreds of customer complaints could be found on the Consumer Affair website, but it’s now bombarded with what appear to be hundreds of endorsements by LifeLock. The imageless comments all give perfect scores and perfect experiences. LifeLock seems to be in damage control. Previously, some of the people complaining say their banks and credit card companies offer the same and better LifeLock services—for free. And many complain LifeLock makes it nearly impossible to cancel a membership while they continue to bill customers long a cancellation notice. Others protest LifeLock simply did not deliver their promises:
“Recently we bought a car, opened 3 credit cards and bought a house. Lifelock did not see any of these transactions. We cancelled in September and yet they kept billing us until January."
In a statement, LifeLock claimed,
“The allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place. The settlement does not require us to change any of our current products or practices.”
Wait, what? “The settlement does not require us to change any of our current products or practices.” $112 million later, and LifeLock still doesn’t seem to get it.
Ironically, on Twitter, LifeLock warns their customers of fraud against Seniors. They would know.
If you’ve had a bad consumer experiences with LifeLock (or any company) you can make a formal complaint with The Federal Trade Commission (FTC):
“The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling,” Edith Ramirez, the F.T.C. chairwoman, said in a statement.
Is good to see U.S. government agencies at their best, aggressively working to protect the welfare of the American people. Many thanks to FTC, and... thanks, Obama!
