FTC Accuses LifeLock of False Advertising Again
An anonymous reader writes: You may remember LifeLock — it's the identity protection company whose CEO published his social security number and dared people to steal his identity. Predictably, 13 different people succeeded. LifeLock was later sued for deceptive marketing practices, and eventually settled with the U.S. Federal Trade Commission to the tune of $12 million. Part of that settlement, of course, required that they refrain from misrepresenting their services in the future. Now, the FTC is taking action against them again, saying they failed to live up to that promise. The FTC claims (PDF) LifeLock falsely advertised that it "protected consumers' sensitive data with the same high-level safeguards as financial institutions" and also failed build systems to protect the data they held.
LifeLock was later sued for deceptive marketing practices
Marketing by nature is deceptive . You never sell what you sell but you create the need ( more often than not artificial) for people . How many car advertisements actually talk about the car?
With all the personal data being stolen every which way, there is so much free credit monitoring being offered to consumers by companies that if you haven't already been offered some, then you must live in a cave and not need any.
I am Slashdot. Are you Slashdot as well?
Back in 2000 the company I worked for "Accidentally" put everyones info (HR Database) on the public FTP site. Including Bank account info, all the security questions, ss#, salaries, etc.
At that time I looked into "Protecting" myself from identity theft and realized there was an easy solution.
1) Run my credit into the ground. Someone stealing an identity does not want to clean up your credit. They want an easy target.
2) Pay off all my debts. Believe it or not, paying off your debts without creating new ones lowers your credit score.
3) Live off what I make! No credit cards, no loans, no credit.
Now, 15 years later, I have 4 cars, a boat, 12.5 acres in the country, and a house. I got the home loan before I did all of this and it is the only debt I have left. The rest was saved for and I paid cash for them.
It is amazing how much cash you have when you are not loosing 12%, 15%, or 25%, to interest on loan payments.
The FTC should be looking at federal systems which have failed to protect federal employees from their own guvment!
Marketing by nature is deceptive
Not true. Marketing done well is VERY honest with customers. You can lie in marketing but that doesn't mean marketing is nothing but lies. Marketing fundamentally is about creating and maintaining a relationship with a customer. It's not actually about selling the product - not directly anyway. You have a product and you are trying to find a way to communicate the existence and benefits of that product to others - that is marketing. Along side that you are communicating with potential customers about who you (the seller) are and what you are about. At its core that is all marketing is - developing relationships. You'll note that lying is no way required to do that and frankly it is largely counterproductive in the long run.
People don't buy Coca-cola because Coke Inc is lying to people about what it is and frankly they don't really need to lie about it. Sure they are selling flavored carbonated sugar water but they are also selling a brand which is intangible but clearly valuable to many people. Lying in marketing is kind of like a guy falsely claiming to be a doctor to pick up a girl in a bar. It might work but it isn't likely to last. While it is possible to lie in marketing and be successful for a time with it. But that does not mean that marketing is intrinsically deceptive.
Marketing is not the same thing as sales. Sales is the actual act of convincing someone to buy a product or service. Marketing is developing a relationship with a customer and an awareness of the product. Those things are related but are different stages in the process.
Why do people say "again" when they mean "still"
The FEDGOV had let the most sensitive of all information be stolen en masse, background checks for security clearances, and NEEDS Lifelock to save their own employees and spies from financial fraud. Hey Lifelock, I know how to solve this since FTC is a regulator not subject to scrutiny of their rulings, because the oversee their own "court". Double the price of your services for any FEDGOV related leaks.
Regulators are in a monologue with themselves.
JJ
Lifelocks's primary service is that they put a credit freeze on your account. This makes it impossible to open (mainstream) credit lines in your name. You could do a credit freeze yourself, but it is a PITA.
What this does is reduce the value of the 'inventory' of the credit rating agencies. Lifelock has made very powerful enemies and that is why it is constantly smeared and attacked.
--AC
I wouldn't trust anyone who uses Rudy Ghouliani for their TV spokesperson. He's one of the most dishonest ones out there. On par with most Republicans, but still one of the most dishonest.
Isn't this the same company whose CEO stuck his SSN up on the commercials challenging people to steal his identity? Well they did -- 13 times to be exact.
http://www.wired.com/2010/05/l...
Ok, I understand nobody on /. will RTFA, but to not even read the first sentence of the summary?
Wonder what the public key field is for?
Yeah, just like it said in the summary.