Posted on 03/09/2010 4:14:44 PM PST by iowamark
CEO known for putting Social Security number in ads * FTC says ads were deceptive, overstated protections * CEO says new ads better clarify LifeLock services
LifeLock Inc, which promises to protect consumers from identity theft, agreed to pay $12 million to settle claims by the Federal Trade Commission and 35 U.S. states that it overstated the value of its service.
The FTC said on Tuesday the settlement bars LifeLock and its principals from making "deceptive claims" and requires the Tempe, Arizona-based company to take "more stringent measures" to safeguard the personal information of customers.
The FTC said LifeLock has advertised since 2006 that it could stop identity theft for consumers who buy its $10 per month service. But it said the company's fraud alerts did not protect customers from misuse of existing accounts, the most common form of the crime....
"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," FTC Chairman Jon Leibowitz said in a statement.
Under the settlement, LifeLock cannot misrepresent that its service provides "complete protection against all forms of identity theft by making customers' personal information useless to identity thieves."...
The FTC said $11 million of the settlement will be used for customer refunds. The rest will go to the office of Illinois Attorney General Lisa Madigan for distribution to the states...
Davis said he no longer puts his Social Security number in LifeLock ads. He said the number was breached once, when it was used in 2007 to obtain a $500 payday loan. LifeLock has more than 1.5 million customers, he said.
(Excerpt) Read more at reuters.com ...
When will the Federal government go after the Madigans?
when you advertise on Rush, you’re an automatic target to the libtards.
I hate hearing/seeing their ads every 10 mins.. Enough already!
I used to work for a company that took phone calls for Lifelock and at first I thought it was a great company. Then I started getting calls from irate customers who could not get through to Lifelock when they had a problme with their identity. I began to think it was a scam. You can put blocks on your credit reports yourself. You ever try to read what the $1,000,000.00
covers? You can’t.
This is not Todd Davis’ first FTC complaint related to his commission of fraud.
There is another company that actually provides the Identity Theft protection they offer to their customers.
All Life-Lock does if place fraud reports in your name to the credit bureau. If your ID is stolen, the just tell you what YOU need to do rather than fix it for you.
In fact, some of the credit bureaus are suing Life-Lock for placing fraudulent fraud alerts. Answering the phone calls from Life-Lock costs a lot of money in labor and phone bills.
Life-Lock is a scam.
That’s ridiculous.
lifelock made the credit bureaus look bad. payback
Yup. First Zicam, now Lifelock.
Didn’t Rush push GM also?
From the first time I saw that guy Davis on a TV ad, he struck me as sleazy.
I agree, but the thought of Lisa Madigan criticizing someone else’s ethics is what struck me as bizarre.
Oh my, you are right.
I’ve heard it in a couple of disclaimers in ads. They only will work to clear up problems as a result of identity theft if they were responsible for it. Good luck - worthless service.
If you buy anything that Rush is selling, you’re a sucker.
I enjoy listening to Rush, but would never buy a product he endorsed.
Gotta agree with you. Most of the crap that is peddled on Beck, Rush, and Hannity are scam. Soft water, Internet briefcase, etc...
Carbonite is an excellent Internet-based computer back-up service and is inexpensive. I would swear by it, and I have no interest in the company. I recently had to restore many gigs of files due a failed a hard drive at work. Worked flawlessly.
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