Refunds mailed to LifeLock customers

The Federal Trade Commission this week began mailing $10.87 refund checks to the nearly 1 million victims of false-advertising claims made by Tempe-based LifeLock Inc.

The checks will go to 957,928 people over the next two weeks. Recipients have 60 days to cash them, the FTC said.

The settlement comes after LifeLock told consumers it could provide absolute protection from identity theft if they signed up for its identity-protection service, the FTC said. Customers pay $10 to $15 a month.

In March, officials announced LifeLock agreed to pay $11 million to the FTC and $1 million to 35 state attorneys general, including Arizona's, to settle charges the company used false claims to promote its identity-theft-protection services. The money awarded to states went to cover investigative costs.

LifeLock's services were advertised widely in TV commercials, billboards and on sides of trucks featuring company Chairman and CEO Todd Davis' Social Security number.

The FTC charged that LifeLock provided less protection against identity theft than promised and made claims about its data security that were not true.

Davis denied the company misled customers at the time of the settlement. He also said it likely wouldn't have much of an impact on business because it already altered much of its advertising and practices.

"We still stand by our previous comments about this redress situation," said Mike Prusinski, senior vice president of corporate communications, on Friday. "We have developed a very good working relationship with the FTC and now the entire industry is being held to a higher standard, which we applaud."

All eligible consumers will receive checks and no further claims will be accepted, the FTC said. Consumers with questions may call 1-888-288-0783 or visit ftc.gov/refunds.

by John Yantis The Arizona Republic Nov. 20, 2010 12:00 AM






Refunds mailed to LifeLock customers