In March of 2010, LifeLock agreed to pay $11 million in restitution to customers for misleading advertising. They also paid $1 million in legal costs to 35 states involved in the suit. LifeLock customers received checks for around $10; enough to repay them for about one month of service.
This suit resulted in one of the largest FTC and state coordinated settlements in history. According to the Federal Trade Commission:
The FTC and state settlements with LifeLock bar deceptive claims, and prohibit the company from misrepresenting the "means, methods, procedures, effects, effectiveness, coverage, or scope of any identity theft protection service." They also bar misrepresentations about the risk of identity theft, and the manner and extent to which LifeLock protects consumers' personal information. In addition, the settlements require LifeLock to establish a comprehensive data security program and obtain biennial independent third-party assessments of that program for twenty years.
Virginia Attorney General Ken Cuccinelli was one of the state lawyers involved in the suit. After the settlement, his office had this to say:
Identity theft continues to be one of the fastest growing crimes in the United States. Although we welcome any business that offers services to help consumers prevent becoming victims of this crime, we have concerns when any business does not provide its potential customers with accurate information about its product. In our free market economy, requiring all businesses to provide truthful and accurate information is necessary for a level-playing field among competitors. Virginia was one of 35 states which, along with the Federal Trade Commission, joined in the suit against LifeLock.