Pre-Paid Legal Services, Inc. (PPD) announced that it received a proposed draft complaint from the Federal Trade Commission on November 18, seeking permanent injunctive relief, disgorgement of proceeds and other relief, including costs, relating to our Identity Theft Shield and Affirmative Defense Response System or ADRS Program.
The proposed draft complaint alleges the company's ADRS program and related materials violate Section 5(a) of the FTC Act regarding asserted misleading representations, express or implied. The proposed draft complaint also names Harland Stonecipher, the company's chief executive officer, and Mark Brown, chief marketing officer, as defendants.
The company said that it previously received a Civil Investigative Demand from the FTC on March 23, 2007 on the ADRS program. The company also made voluntary revisions to the marketing materials originally provided to the FTC in 2007 and 2009.
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