FTC says LifeLock didn't set up information security program and is violating settlement terms

Economic Indicators Associated Press

The U.S. government says identity theft protection company LifeLock is misleading consumers about the level of protection and the timeliness of the warnings they will receive, and charges that LifeLock isn't living up to a previous $12 million settlement with regulators.

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The Federal Trade Commission says LifeLock Inc. did not set up a comprehensive information security program to protect sensitive data like credit card and Social Security numbers. The FTC also says LifeLock made false claims in its ads.

In 2010 LifeLock agreed to make changes and pay $12 million as part of a settlement with the FTC and 35 states.

LifeLock says the FTC's comments are related to past business practices and that it is prepared to defend itself in court.

Its shares tumbled 32 percent to $10.78 in afternoon trading.