Lifelock paying $100M to consumers to settle US charges

WASHINGTON (AP) — LifeLock is paying $100 million to consumers to settle charges by federal regulators that it failed to take adequate measures to protect customers' personal data under a court order.

The Federal Trade Commission announced the settlement Thursday with the provider of identity-theft protection. The agency says it's the largest settlement it has won in this type of enforcement case.

The 2010 order by a federal court required LifeLock Inc. to secure customers' data, such as credit card and Social Security numbers, and to avoid false advertising claims. The order resulted from an action brought by the FTC and attorneys general in 35 states, alleging that LifeLock used false claims to promote its services. The company paid $12 million in that settlement, which went mostly to customer refunds, and agreed to make changes to its business practices.

The FTC said that LifeLock violated the order by failing to maintain "a comprehensive information-security program" and to avoid deceptive advertising.

LifeLock is based in Tempe, Ariz. Company co-founder and CEO Todd Davis used to put his own Social Security number on business cards and company trucks to advertise LifeLock's services.

LifeLock noted that it neither confirms nor denies the government's allegations under terms of the new settlement. Once it is approved by the court, the settlement will help bring to a close the FTC case as well as a class-action lawsuit, the company said.