An administrator working for the Federal Trade Commission began mailing refund checks yesterday to 957,928 people who were victims of allegedly false claims made by LifeLock, Inc., which told consumers it could provide absolute protection from identity theft if they signed up for its identity protection service. The mailings will continue for two weeks.
In March 2010, FTC Chairman Jon Leibowitz announced that LifeLock had agreed to pay $11 million to the FTC and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the company’s CEO’s Social Security number on the side of a truck. The FTC charged that LifeLock provided less protection against identity theft than promised and made claims about its own data security that were not true. Consumers who signed up for LifeLock’s services based on those false claims will now be receiving refund checks.
Consumers will receive checks for $10.87 each, and will have 60 days to cash them. The distribution represents all eligible consumers, and no further claims for refunds will be accepted. Consumers who have questions can call the administrator’s toll-free number at 1-888-288-0783 or go to www.ftc.gov/refunds.
These consumer refund checks can be cashed directly by the recipients. The FTC never requires the payment of money up-front or additional information to be provided before consumers cash their refund checks.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.