Claire Kowalick, Wichita Falls Times Record News
Published 7:50 p.m. CT Oct. 8, 2019
The Federal Trade Commission will soon begin sending out $31 million in refund checks stemming from a settlement with LifeLock, Inc.
Allegations against the identity-theft protection company claim it violated a 2010 data security order.
The refunds are from a 2015 settlement with LifeLock and the FTC which alleged that from 2012-2014, the company violated an order that required them to secure consumers’ personal information and prohibited the company from practicing deceptive advertising.
The FTC says LifeLock did not have a comprehensive information-security program to protect consumers’ information.
LifeLock is also alleged to have engaged in false advertising by claiming they protect consumers’ sensitive data with the same level of security used by financial institutions and falsely claiming they would alert customers “as soon as” there was an indication of a consumer’s identity being used.
Under the 2015 settlement, LifeLock agreed to pay $100 million – $68 million of which was set aside to refund customers who were part of a class-action lawsuit with similar allegations against the company.
The FTC settlement stated that any funds left over from the class-action lawsuit could go to other consumer refunds.
About $67 million ultimately went to customers in the class-action lawsuit, leaving more than $31 million for people who were LifeLock customers from 2012-2014 who were not part of the class-action lawsuit.
The FTC is mailing out more than one million checks, averaging about $29 per check.