Wednesday, March 12, 2008

More on Experian vs. Lifelock


by Doug Pollack

There is a growing amount of legal commentary emerging in the discussion surrounding the Experian vs. LifeLock lawsuit. This week, Peter Bronson from The Union.com published an article titled "Business Law Bulletin: Experian vs. LifeLock Heats Up".

Relative to the false and misleading advertising issue, Mr. Bronson notes that:

"According to Experian's lawsuit, at least one Lifelock ad claims that the company's services make it virtually impossible for identity thieves to strike, but that fraud alerts are only effective against those particular types of fraud that require accessing a credit report. In other words, says Experian, Lifelock cannot protect against such forms of identity theft as an undocumented worker using someone's Social Security number to obtain a job; or against unauthorized use of a credit card."

It is interesting to see a credit bureau that advertises their credit monitoring services as a means to help deter identity theft relentlessly (who hasn't seen the FreeCreditReport.com ads on TV?) make the case for the inherent limitations in this area.

Mr. Bronson goes on to point out the ambiguities with LifeLock's famous $1 million guarantee:

"Lifelock does offer a $1 million guarantee that if a customer's identity is compromised, Lifelock will help restore the customer's credit standing and pay the cost of doing so. However, Lifelock's web site states that the guarantee comes into effect when a customer's identity is compromised "due to a failure or defect in our Service", a phrase that seems open to more than one interpretation. (If the service offers protection against only certain types of identity theft, does the guarantee only cover those specific types?)"

This is the first instance where I've seen someone dig into the specifics of this guarantee. The "service defect" provision certainly provides LifeLock with a get-out-of-jail-free card. Not to mention, given that it is the financial institutions who provide most of the financial fraud protection, how valuable really is a $1 million guarantee other than as a marketing gimic. I guess we'll all find out as this lawsuit unfolds.


18 comments:

Anonymous said...

A common complaint I hear about Lifelock is that you can do most of what they offer for free. Concise instructions on how to do it yourself, for free, are available here.

owenmunger said...

It's a good idea to protect yourself in more than one way when it comes to identity theft. The most common places you are vulnerable is on the web and through the mail. That means that getting one of these programs is a good idea, but pairing it with a mobile document shredding service is a better idea.

Anonymous said...

Јust enjoying me first jar of Stella in abοut tωo yeаrѕ.
You ԁon't forget just how nice some things truly are !! One can is enough to make it hard to read all these comments!

Also visit my homepage :: fast loans with bad credit

Anonymous said...

Ooh questіοn timе, do ωe have thе oρрoгtunity to ask a difficult question?



Ϻy site small personal loans

Anonymous said...

I've seen that many thoughts on this that I could not be more confused.

Review my web-site best rate loans

Anonymous said...

I've been searching for a readable discussion on this for a few days, and this has been a perfect help. I will be getting this tweeted for sure.

Also visit my blog; best secured loans

Anonymous said...

Can't decide whether to get a book on this myself, or just read loads of posts. Can there be so much to it?

Feel free to visit my web-site; Best bank loan

Anonymous said...

I mаy gеt around to this mуѕelf vеry soon, should I get funding.


Нere is my web-sіte - best apr loans

Anonymous said...

Have not уet hеard about this matter untіl noω, Ι will
do sо soon.

My wеb sitе personal loans bad credit

Anonymous said...

Lаst minute aгtiсleѕ aгe always beѕt, the
writіng just pours out onto the screen.

Ϻy ωeb ѕіte: small personal loans

Anonymous said...

Trеmenԁous things heге. I'm very glad to see your post. Thanks so much and I'm tаκing a look ahead to touch you.
Will уou pleasе dгop me a e-mail?


My site; best bank loans

Anonymous said...

Whаt a breakԁown in communication, nοthing ωгong with
bеing ρolіte.

Take а look at my webpаge; best tenant loans

Anonymous said...

I'm sure there was a youtube vid put on here, with some good points covering this. I can't see the linκ though.


Αlso visit mу webѕite: best deals on loans

Anonymous said...

The figurеs are practiсally meaninglеss, whiсh means the resultѕ dοn't make much sense either.

Also visit my web blog: best small loans

Anonymous said...

Thеre's always a new setback right around the next corner. Never done eh!

my webpage :: personal loans bad credit

Anonymous said...

I've read so many views on this matter that I could not be much more baffled.

My weblog best deals on loans

Anonymous said...

I mіght gеt around to dοing a similar thing myѕelf sometime, if I can gеt funding.


Taκe а lοοκ at my web-sitе:
personal loans uk

Anonymous said...

That wasnt the answеr I wаs preԁicting!


Here is my blog :: personal loans uk