Source: Walter Hamilton, Los Angeles Times ( Free Registration )

Its chief executive prominently displays his Social Security number in ads for his identity-theft protection company. But LifeLock Inc. couldn’t protect customers from the company’s own misleading advertising, according to state and federal authorities.

In a settlement with the Federal Trade Commission and attorneys general from California and 34 other states, LifeLock agreed Tuesday to tone down claims about the effectiveness of its service and to pay $11 million to customers and $1 million for the costs of the investigation.

The FTC and the states alleged that the Tempe, Ariz., company misled customers by claiming to offer absolute protection against identity theft, when in reality there was no surefire way to keep thieves from assuming a victim’s identity.

Read Full Article: LifeLock settles amid allegations that it misled consumers