WASHINGTON, Dec. 18 (UPI) -- The security company LifeLock will pay $100 million for violating a federal court order regarding customer privacy, the Federal Trade Commission announced.
An FTC statement said the company, based in Tempe, Ariz., will settle contempt charges stemming from a 2010 order regarding deceptive advertising and inadequate security of is customers' personal information.
The FTC said that, after the order, LifeLock failed to protect customers' personal information, such as names and account numbers; it falsely advertised its security features were the equal of financial institutions; it falsely claimed security alerts would be sent immediately to customers; and it failed to keep records in accordance with the order.
Of the $100 million, $68 million will be used to repay customers involved in a class action lawsuit against LifeLock.
"This settlement demonstrates the commission's commitment to enforcing the orders it has in place against companies, including orders requiring reasonable security for consumer data. The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling," said FTC chairwoman Edith Ramirez in a statement.
