National Advertising Division Finds Certain Claims for Online Corporate Formation Services Supported; Recommends LegalZoom Modify or Discontinue Others

Core Viewpoint - The National Advertising Division (NAD) has made recommendations regarding LegalZoom's advertising claims following a challenge by ZenBusiness, determining that some claims are substantiated while others require modification or discontinuation [1][10]. Superiority Claims - ZenBusiness challenged LegalZoom's claims of being the "1 Choice" and "1 Rated/Voted" for online small business formation, which NAD found unsupported by the surveys provided by LegalZoom [2][3]. Best LLC Claim - NAD deemed LegalZoom's "Best LLC Service" claim as puffery, indicating it does not require substantiation as it is a vague statement of corporate pride [4]. Price Savings Claims - LegalZoom's claims that ZenBusiness is "up to 20% more expensive" and that customers can "save up to $39" by using LegalZoom were substantiated. However, NAD recommended modifications to accurately reflect ZenBusiness's offerings, including a free website builder for one month [5][6]. Disclosure of Affiliate Relationship - NAD recommended that LegalZoom disclose any material connections with media outlets featured in its "as seen in" advertisements to ensure transparency [7]. Consumer Purchase Flows - NAD advised LegalZoom to modify its registered agent purchase flow and order review page to clearly disclose available options and pricing for add-on features [9]. Compliance with Recommendations - LegalZoom stated it will comply with NAD's recommendations, although it disagrees with some conclusions, emphasizing its support for industry self-regulation [10].