What LifeLock Promised
LifeLock built its business on identity-theft protection, promising to guard customers’ personal information and alert them the instant signs of fraud appeared. The irony at the heart of the case is that regulators said the company protecting people from identity theft did not adequately protect its own customers’ sensitive data. The Federal Trade Commission alleged LifeLock failed to maintain a comprehensive information-security program, falsely advertised that it secured customer data with the same safeguards banks use, and falsely claimed it would alert customers “as soon as” it detected a problem.
These claims mattered because customers paid specifically for protection and peace of mind that the FTC said LifeLock did not actually deliver.
The Settlement
In December 2015, LifeLock agreed to pay $100 million — at the time the largest amount the FTC had ever obtained in an order-enforcement action — because the conduct violated an earlier 2010 FTC order that had already required LifeLock to stop deceptive claims and better protect data. Of the total, about $68 million was set aside for affected consumers through related class-action claims, with the rest going to state attorneys general and the FTC. The repeat nature of the violations — breaking a prior order — is what drove such a large penalty.
It stands as a landmark example of regulators holding a company to promises it made about protecting data.
What Consumers Should Know
Identity-protection services can help monitor for fraud, but they do not make you “identity-theft proof,” and no service can prevent all fraud. Some of the strongest protections are free and in your control: place a credit freeze with the three credit bureaus, monitor your free credit reports, and use strong, unique passwords and two-factor authentication. Evaluate paid services on what they concretely do, not on sweeping promises of total protection.
Before You Act
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LifeLock Lawsuit: The $100 Million FTC Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What was the LifeLock lawsuit about?
The FTC alleged that LifeLock, an identity-theft protection company, failed to maintain adequate data security, falsely claimed it protected customer data with bank-level safeguards, and falsely promised instant fraud alerts — violating an earlier 2010 FTC order.
How much did LifeLock pay?
$100 million in December 2015, then the largest amount the FTC had obtained in an order-enforcement action. About $68 million was set aside for affected consumers, with the rest going to state attorneys general and the FTC.
Do I need a paid identity-protection service?
Such services can monitor for fraud but cannot prevent all of it or make you 'identity-theft proof.' Strong free steps include a credit freeze at the three bureaus, monitoring your free credit reports, and using unique passwords with two-factor authentication.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.