Identity protection company LifeLock will pay $100 million to settle contempt charges from the Federal Trade Commission for violating a 2010 order that required Lifelock to secure customers’ personal information and to not engage in deceptive advertising, according to a press release from the FTC posted on Thursday.
“This settlement demonstrates the Commission’s commitment to enforcing the orders it has in place against companies, including orders requiring reasonable security for consumer data,” said FTC Chairwoman Edith Ramirez. “The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling.”
The FTC charged LifeLock with violating four parts of a 2010 order. It accused the company of the following:
1. LifeLock failed to establish and maintain an information security program to protect users’ sensitive personal information, including their Social Security Numbers and credit and bank account numbers
2. LifeLock falsely advertised that it protected customers with the same high-level safeguards used by financial institutions
3. LifeLock falsely advertised that it would send alerts as soon as it received any indication that a customer might be a victim
4. LifeLock failed to follow record-keeping requirements