Federal Trade Commission v Pre-Paid Legal Services
Pre-Paid Legal Services says FTC may sue
Pre-Paid Legal Services Inc., a network of independent law firms, revealed Thursday that the Federal Trade Commission may sue the company over allegedly misleading representations made about the Company's identity theft prevention program.
Pre-Paid Legal's identity theft program offers monitoring of credit reports, and is supposed to send alerts if new accounts are opened in a customer's name or if negative items are added to credit reports. The service also claims that it will help customers who are victims of identity theft restore their credit ratings.
Pre-Paid Legal Services, based in Ada, Okla., said the FTC has indicated that it may also take action directly against CEO Harland Stonecipher and Chief Marketing Officer Mark Brown.
The company had received notice in March 2007 that it was under civil investigation by the FTC over its Identity Theft Shield and Affirmative Defense Response System. It said it had voluntarily revised its marketing materials and provided them to the FTC in 2007 and 2009.
