Court finds LegalZoom Deceptive and Unqualified

          Do-it-yourself business formation and estate planning documents services like LegalZoom offer a tempting option to cost-sensitive individuals with legal needs.  Indeed, in difficult financial times, who can resist a claim such as this:  "You save $1,491.00 with LegalZoom! A lawyer would charge you approximately $1,740.00 for the standard LLC package."? According to a recent consent decree entered into by LegalZoom with the Attorney General of the State of Washington, perhaps we all should.

          The court noted that LegalZoom was misrepresenting the benefits, costs, complexity and time involved in customer legal matters.  It also concluded that the company was engaged in unauthorized practice of law and failed to protect adequately customers' privacy interests.  

          Proving the old adage 'you get what you pay for', LegalZoom agreed to modify its online representations regarding the services that it provides to disclose honestly what it's discount packages truly amount to:  risky and non-individualized general information provided by unlicensed and untrained employees.  Among the disclaimers now contained on the LegalZoom site are:

• At no time do we [LegalZoom] review your answers for legal sufficiency, draww legal conslusions, provide legal advice or apply the law to the facts of your particular situation.  LegalZoom is not a substitute for an attorney;
• Communications between you and LegaZoom . . . are not protected by the attorney-client privilege; and
• [T]his site is not legal advice and is not guaranteed to be correct, complete or up-to-date.  The law is a personal matter, and no general information or legal tool like the kind LegalZoom provides can fit every circumstance.

          Not exactly a confidence inspiring list.  An appropriate question to LegalZoom is whether or not they consulted with an attorney prior to drafting their disclaimer.  The bottom line is this:  you need to know what you don't know.  Only a licensed and experienced attorney can provide competent legal advice.