LifeLock, an American identity theft protection company, has taken a huge hit in their business integrity after the Federal Trade Commission (FTC) determined that the company has continued to make deceptive claims about its services through failing to adequately protect its customers' bank or credit card information and violating the terms of its 2010 settlement, according to the agency's press release. Forbes reports that the company's stock also plummeted around 48 percent after this ruling.
PYMNTS reports that the FTC claims that LifeLock was providing false information from October 2012 to March 2014, through stating its services were equal to those protections found through larger financial institutions. As part of the claims that the company has violated its previous $12 million FTC settlement, the agency has requested that the company provide compensation to all consumers affected by this alleged violation.
Furthermore, some more of the claims the FTC has made are that the company has not in fact effectively protected its customers personal data and is guilty of false advertising. The agency voted 4 to 1 in favor of this movement. LifeLock has since issued a statement that states it will fight this accusation in court and claims that it strives to fully protect its customers.
"It is essential that companies live up to their obligations under orders obtained by the FTC," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "If a company continues with practices that violate orders and harm consumers, we will act."
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