LegalZoom Files Lawsuit Against RocketLawyer for False and Misleading Advertising Over Use of the Word "Free"
November 20, 2012 --
GLENDALE, Calif., Nov. 20, 2012 (GLOBE NEWSWIRE) -- In order to prevent the continued deception of consumers and small business owners seeking online legal protection and to compel RocketLawyer to comply with well established industry rules, LegalZoom has filed a 14-page suit alleging false and misleading advertising, trademark infringement and unfair competition against RocketLawyer in the United States District Court for the Central District of California.
The central issue before the court is what LegalZoom believes is RocketLawyer's false and misleading advertising. LegalZoom believes the facts in this case are clear and compelling and that a jury will understand that RocketLawyer has violated FTC guidelines and crossed well over the line in its marketing.
The lawsuit follows numerous unsuccessful attempts by LegalZoom over the past year to convince RocketLawyer to cease the practices which led to the filing of the complaint. Those attempts included providing RocketLawyer with a copy of Federal Trade Commission guidelines that impose clear limitations on use of the word "free" in advertising and marketing materials. RocketLawyer's advertising includes the false claims that RocketLawyer provides "free incorporation," "free legal review," and "free help from local attorneys" despite the fact that access to these "free" services can require paying filing fees or buying a paid membership plan.
This lawsuit is simply about stopping what LegalZoom believes is a deceptive advertising practice. When customers are tricked into believing that services are 'free,' but then discover numerous fees down the line, they will lose faith in both the law and the industry. Competition is always a healthy dynamic, but fair play requires that all competitors follow the law.
LegalZoom seeks millions of dollars in damages and has pledged to donate any monetary recovery in excess of its attorneys' fees and costs to non-profit organizations that provide legal services to the underserved.
LegalZoom is the nation's leading provider of personalized, affordable online legal solutions for families and small businesses. Founded more than 12 years ago by attorneys with experience at some of the top law firms in the country, LegalZoom has helped over two million Americans become protected with binding legal documents. Although LegalZoom is not a law firm, it can help people access an attorney through its legal plans. The company is headquartered in Glendale, California. For more information, visit www.legalzoom.com.
CONTACT: Johanna Namir, (323) 337-0022