Local company to pay $12 million for not protecting your identityPosted: Updated:
PHOENIX - Federal regulators say a local company made promises that it could not keep.
Lifelock, Inc. has about 1.5 million customers and a million of them are now eligible for restitution if they feel the company promised more than it delivered.
The promise was to keep your personal information safe, even in the wrong hands.
Lifelock just agreed to pay the Federal Trade Commission and 35 states, including Arizona, $12 million to settle the false advertising claims.
The chairman and CEO of Lifelock Todd Davis says the settlement is not an admission of wrong, but he thought it was the right thing to do. “We don't agree with it however we understand their review that some people could have misunderstood the advertising and what it conveyed which was of course not our intent.”
Recent ads have been updated to reflect that. Davis says the settlement affects about 1 million Lifelock customers who signed up for the service between 2005, when the company was founded, to March of last year.
The Arizona Attorney General's Office says states, along with the FTC, will send out letters to eligible consumers.
You will also soon find a link on Lifelock's website. Davis says, “If for any reason you aren't satisfied with the service and felt like you understood it to be something different in the advertising, you have the ability to make the claim.”
If customers do not claim their portion of the money, $11 million in total, it goes back into the treasury.