FTC Investigating LifeLockWritten by Michael Levanduski
March 20, 2014 # 6:24 pm # Legal Challenges, Specials # 6 Comments
LifeLock, an industry leading identify and data Protection Company, has recently confirmed that they are the subject of an active FTC. This may be of particular interest to the many affiliate marketers who are part of the LifeLock affiliate program. This is not entirely unexpected, as LifeLock filed a 10-K form learly this year, which stated that the company was expecting to be a part of an investigation in the future, though at that point the investigation had not yet started.
The recently filed 8-K document informs customers, investors and others of the situation. In it, they state:
“In its Form 10-K for the period ending December 31, 2013, filed on February 19, 2014, LifeLock Inc. (“Lifelock”) disclosed that it had met with the Federal Trade Commission (“FTC”) and that LIfeLock thereafter expected to receive a request form the FTC for documents and information.”
The filing goes on to say, “On March 13, 2014, LifeLock received, as expected, a request from the FTC for documents and information related to LifeLock’s compliance with the FTC Stipulated Final Judgment Order for Permanent Injunction and Other Equitable Relief that LIfeLock entered into in March 2010. LifeLock intends to cooperate with the FTC in these requests.”
The 2010 settlement that they referred to was regarding a claim the FTC made that the advertising being used by LifeLock was misleading. The FTC may be concerned that LifeLock is once again using questionable advertising techniques. Of course, it is too early on in the situation to know for sure.
It is also unknown what type of impact this could have on the business, or the affiliates promoting the business today and in the future.
What do you think about this FTC investigation? Are you an affiliate for LifeLock? If so, what are your thoughts?