Monday, March 15, 2010

Maine and Lifelock Settle Allegations of False Claims (Identity Theft)

From a recent news article: 
"Maine is one of several states that have reached a $12 million settlement agreement with an Arizona-based company over misleading advertising for identify theft protection.

Maine Attorney General Janet Mills, along with the U.S. Federal Trade Commission and 34 other states, announced today that an agreement has been reached with LifeLock, Inc., based in Tempe, Arizona.

Regulators accused LifeLock of deceptive business practices, claiming the company made false claims that it could protect consumers from all forms of identity theft. Mills says the company misled consumers to believe its services were a "proven solution" to the problem.

"No company can guarantee that you will not be a victim of identity theft," Mills says in a statement. "The safest bet is to closely review your debit and credit card statements when you receive them and question any unfamiliar charges."

Under the agreement, LifeLock will pay $11 million in restitution to consumers and $1 million to cover the cots of the states' investigation. LifeLock is also prohibited from misrepresenting its services and from overstating the risk of identity theft to consumers."
Source: "Maine Settles With Lifelock Over Deceptive Business Practices", Maine Public Broadcasting Network, March 10, 2010.  Click here to learn more about identity theft.

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