Iowa is part of a settlement with an Arizona-based company that markets identity theft protection services. LifeLock’s TV ads featured a rolling billboard displaying the social security number of the company’s C.E.O. Iowa Attorney General Tom Miller say he and attorneys general from 34 other states accused LifeLock of exaggerating what their services could do and misrepresenting how the company would protect consumers who suffered losses.
“For example, they were talking about a million dollar guarantee against people’s losses,” Miller said. “The money went not to people’s losses, but to the cost of lawyers, investigators and like professionals to deal with the situation of identity theft. That’s quite a difference.”
Under the agreement, LifeLock is prohibited from misrepresenting its services in the future. “What they need to do is sell their product on its merits,” Miller said. In addition, LifeLock has agreed to pay $11 million in restitution to consumers. The company is reported to have 1.5 million customers who have paid $10 a month or $110 per year for LifeLock’s services.
Miller says he’s not sure how many of those customers are from Iowa, but he believes it’s a “substantial number.” The Federal Trade Commission and the states are planning to send letters to eligible consumers, notifying them of the agreement and how they can opt-in to the settlement.