LifeLock Victims To Receive Refund Checks From FTC

The Federal Trade Commission began mailing refund checks Wednesday to 957,928 people who were victims of 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, the FTC announced that LifeLock had agreed to pay $11 million to the FTC and $1 million to a group of 35 state attorneys general, see story, 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.