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LifeLock pays $11 million to settle false advertising charges

http://66.225.205.104/LM20100310.mp3

Identity-theft protection company LifeLock has agreed to pay $11 million in refunds to customers. It's part of the company's settlement with 35 states, including North and South Carolina, and the Federal Trade Commission. LifeLock made its name with a few digits. Here's how one of their commercials goes: "457-55-5462If you've ever worried about Identity theft it's time you got to know LifeLock. I'm Todd Davis and I'm here to prove just how safe your identity can be with LifeLock. That's my real social security number." Some of those ads got LifeLock in trouble with the Federal Trade Commission and several states who say the company over-promised its services. North Carolina Attorney General Roy Cooper says LifeLock can't possibly provide complete protection against all forms of identity theft. "We were concerned about the overreaching nature of the advertisements and the fact that people were paying $10 a month for a service that was not providing them the guarantees that this company was saying they could provide," says Cooper. Cooper says many of the services LifeLock offers, like requesting annual credit reports and stopping pre-approved credit card offers, can be done for free. LifeLock has agreed to stop advertising that it prevents unauthorized changes to customers address information, ensures a customer always receives a call from a potential creditor before an account is opened, and eliminates the risk of identity theft. In a statement, Lifelock CEO Todd Davis says the settlement doesn't change anything because it's based on ads from over two years ago. He says Lifelock's marketing efforts have raised awareness of identity theft. People who paid for LifeLock services between April 2005 and March 2009 are eligible for partial refunds.