LifeLock 2015 Annual Report Download - page 267

Case 3:15-cv-00258-HSG Document 49-1 Filed 11/04/15 Page 109 of 289
can’t;” however, in truth, other banks and credit card companies provide a superior product and they provide it for free;
v. statistical analyses on the rising trends in identity theft; however, a closer review of current data reveals that the incidence of new account fraud-
the mainstay of LifeLock’s services- had actually declined in 2013, meaning LifeLock’s use of such data amounts to nothing more than a scare tactic;
vi. $1 Million Total Service Guarantee; which is in actuality a clever marketing ploy that is essentially worthless.
5. In short, LifeLock purports to provide sweeping and superior identity theft protection services, when, in fact, its services are limited in scope and
effectiveness and inferior to services offered by other credit card companies for free.
6. LifeLock’s unsavory and deceptive practices are nothing new. Indeed, as recent as 2010, the Federal Trade Commission (“FTC”) and 35 Attorneys
General brought an action (the “FTC Action”) alleging that LifeLock made material misrepresentations and/or omissions of material fact in violation of
Section 5(a) of the FTC Act by representing and/or creating the impression, among others, that (a) LifeLock stops identity theft before it happens, (b)
LifeLock offers a proven solution to identity theft, and (c) LifeLock guarantees identity-theft from ever happening. As a result of the FTC Action LifeLock
was permanently enjoined from “misrepresenting, in any manner, expressly or by implication” that its product prevents misuse of personal data, the
effectiveness or scope of its services, and the risk of identity theft to consumers, among other things. In addition, LifeLock was forced to pay out
approximately $12 million. Notwithstanding, LifeLock continues, 5 years later, to engage in the same fundamental, deceptive practices in marketing to new
customers and in inducing existing customers to renew the service on a monthly or annual basis.
7. LifeLock’s subscription-based services are governed by, among other things, LifeLock’s Service Terms and Conditions (“Service Terms”), which
specifically provides that
The Service Terms and any Services provided hereunder will be governed by the laws of the State of Arizona, without regard to any laws that would
direct the choice of another state’s laws and, where applicable, will be governed by the federal laws of the United States.
As such, class-wide application of Arizona law is appropriate.
1279432.1 - 3 - AMENDED CLASS ACTION COMPLAINT
CASE NO. 3:15-CV-258