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FTC Plays Hard Ball, Fines LifeLock for Violating Customer Privacy Order

The Federal Trade Commission recently demonstrated the repercussions companies can face when they violate an order requiring them to improve security measures with their customers’ personal information.

LifeLock, a provider of identity theft protection services, must pay $100 million – the largest monetary penalty the agency has ever levied in an order-enforcement action – to settle contempt charges for violating a 2010 court order.  In addition, the FTC has also required LifeLock to pay a fine of $12 million, which $11 million would be paid to the FTC and $1 million to the state attorneys general.

This article addresses the deceptive advertising claims that the FTC asserted against LifeLock, the company’s alleged failure to secure customers’ personal data, and its record-breaking settlement.