In 2008, the Federal Trade Commission (FTC) filed a lawsuit against Lifelock, Inc. alleging that the company did not prevent identity theft or provide some of the services it advertised. Lifeloack agreed to a Permanent Injunction preventing it from making misrepresentations, but in 2015, the FTC filed a contempt action against the company for violations. But the complaint for this class action alleges that Lifelock is still failing to provide the services it advertises.
The class for this action is all persons in the US who are or were subscribers of Lifelock’s fee-based identity theft protection services between January 21, 2016 through the resolution of this matter.
Lifelock’s ads claim it protects customers from identity theft. It purports to offer (1) notification if a customer’s personal information is stolen or used fraudulently, and (2) reimbursement and help in remedying the situation if a customer does suffer identity theft.
If true, the allegations of one of the two plaintiffs, Joe Weingarten, shows an alarming lack of attention. Roughly a year after he signed up with Lifelock, in March 2016, the complaint claims, someone tried to open a credit card with Bank of America and an account with the Navy Credit Union in his name. Also, the identity thief had submitted a change of address to the post office in his name, in order to divert his mail.
According to the complaint, Lifelock did not alert Weingarten to any of these false uses of his identity. He was able to stop the Bank of America credit card, he says, because the bank notified him, then inform the post office of the illegal change of address. He then ordered a credit report from Experian and discovered the Navy Credit Union account. The thief had also tried to change the address on the Experian account.
When Weingarten called Lifelock to report the incidents, he claims the representative tried to sell him to a more expensive plan.
Weingarten also had two checks stolen, the complaint claims, one of which he was able to stop payment on, for a $35 fee, and the other of which was used to buy items on eBay. Lifelock did not notify him and did not reimburse him for either of these expenses, the complaint says.
The following month, Weingarten checked the alerts on his Lifelock account and did not see any report of the incidents he’d reported. Two more incidents occurred, and Lifelock did not alert him to either.
According to the complaint, Lifelock cannot provide the services it claims to offer because it monitors transactions at only a small number of banks, credit cards companies, and other outlets, and because it does not adequately monitor changes of address. Also, according to the complaint, Lifelock did not assign anyone to help Weingarten correct the instances of identity theft that had occurred.
The complaint claims that the company has breached its contracts and unjustly enriched itself.