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LifeLock ordered to give refunds, modify its claims

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Tuesday, March 9, 2010

(Updated 2:03 pm)

Staff Reports

RALEIGH — A company that promised to safeguard a person's identity must give refunds and restate its advertising claims after a judgment filed today in N.C. Superior Court.

The N.C. Attorney General's Office said LifeLock owes $11 million in refunds after the agreement reached with North Carolina, 34 other states and the Federal Trade Commission.

"Identity theft is a serious crime," N.C. Attorney General Roy Cooper said, "and criminals aren't the only ones trying to make money off of it."

LifeLock sells identify theft services for $10 a month or $110 a year. In past advertisements, the company claimed a guarantee that personal information would be protected. Some ads even included the Social Security number of company CEO Todd Davis.

About a year ago, prosecutors in several states began looking into the company after complaints about misleading statements in LifeLock's ads. The Attorney General's Office said North Carolina and Illinois officials led the probe.

According to the settlement, LifeLock:

* Can no longer say it provides complete protection against all types of identity theft.

* Cannot claim that its services eliminate the risk of identity theft.

* Can't say that the company can prevent unauthorized changes to customer's address information or say that it can constantly monitor activity on each of a consumer's credit reports.

* Must not overstate the risk of identity theft.

* Owes $11 million refunds to customers who signed up and paid for LifeLock services between April 1, 2005, and March 30, 2009. The FTC will handle consumer claims.

* Will pay another $1 million to the states, which includes $100,000 to North Carolina for investigative costs.

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aliluyya

March 9, 2010 - 2:43 pm EST

I always thought that was a big fat scam when I saw their commercials.

Attorney General Roy Cooper is a fighter for the people - he's possibly the only politician I've ever heard of that seems to be upstanding.

nippded twistle

March 9, 2010 - 3:43 pm EST

Ouch. That's gonna hurt the bottom line!

mommyoftwo

March 9, 2010 - 4:05 pm EST

I have been a satisfied Lifelock customer since 2006. I have never had an identitiy theft but Lifelock has always provided credit checks and called me anytime I have applied for credit to verify it was actually me doing so.
Am I reading this correctly.... Should I expect a refund for the last 4 years of service?

Savemymoney

March 9, 2010 - 9:03 pm EST

You should go with the best in Identity Business. Krolls is the best in the business. They been in business for 37 years and was started by ex CIA/FBI people. They are the ones who lock up osama been laden money. They cover all five areas of Identity Theft. Lifelock does not cover that. Very affordable. I love there service.

cdgallow

March 9, 2010 - 4:38 pm EST

if you're a satisfied customer, you obvi wouldn't need to get a refund... i think lifelock is doing everything they can do to help consumers out! why do they get such a bad rep? they're just offering a service... pay for it if you want. if you don't, then don't. i don't like washing my own car, so i pay for it. there's no difference here!

kodyk

March 9, 2010 - 8:14 pm EST

I definitely agree with cdgallow. Lifelock's service is very efficient. A person is not forced to buy it. Anyone who has a lot of time to wait on hold with the Big 3 credit bureaus is free to do so. Personally, I don't have the time and prefer to have Lifelock handle it for me. As a bonus, since becoming a Lifelock customer I receive very little junk mail - saves trees! Lifelock's innovative ads have served to increase awareness of identity theft. People would like to pretend identity theft can't ever happen to them. But it can happen. When your identity is stolen, your life really becomes a nightmare - for years to come. I've seen that happen. Lifelock's membership fee is small. Personally I believe their service is well worth the price.