MASHINIi

LegalZoom.com, Inc..

LZ.US | Other information technology and computer service activities

LegalZoom.com, Inc. provides online legal solutions for individuals and small businesses. The company offers services such as business formation, trademark registration, estate planning documents (wills, trusts), and legal document review. LegalZoom operates primarily through its online platform, pr...Show More

Ethical Profile

Mixed.

LegalZoom faces a class-action lawsuit alleging deceptive practices, including misrepresentation and misleading advertising. The BBB reports 1,496 complaints in three years (399 recent). Employee compensation and benefits rank in the top 15% and 10% respectively, with 60% earning living wages. High turnover and lower ratings in Sales/Product departments are reported. In 2023, $8.7 million was invested in cybersecurity, ensuring 100% document encryption and 99.87% uptime. It is PCI, HIPAA, and GDPR compliant, but lacks AI ethics oversight details. A 260 kW rooftop solar system operates at its Austin office.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect10
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-50
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

No evidence available to assess LegalZoom.com, Inc. on Better Health for All.

Fair Money & Economic Opportunity

0

No evidence available to assess LegalZoom.com, Inc. on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

10

LegalZoom reports that none of its employees are represented by a labor union, and no work stoppages have been experienced.

1
The company conducts regular engagement surveys and reports positive engagement scores, with 72% of employees recommending working at LegalZoom to a friend and 71% having a positive outlook for the business.
2
However, one employee review on Glassdoor states that the turnover rate is 'extremely high'.
3
The company has not reported any substantiated labor-law or human-rights violations in the past two years.
4
As of December 31, 2024, LegalZoom had 964 employees and approximately 600 contractors and consultants globally, meaning approximately 38.3% of its total workforce (employees + contractors) are contractors.
5
LegalZoom provides 100% employer-paid medical, dental, and vision plans, including fertility and mental health coverage, for all employees.
6

Fair Trade & Ethical Sourcing

0

No evidence available to assess LegalZoom.com, Inc. on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-50

LegalZoom has a Whistleblower Policy, effective March 7, 2022, which encourages employees and third parties to report good faith complaints regarding accounting, auditing, fraud, financial, and data security matters.

1
The policy strictly prohibits retaliation for good faith reports and allows anonymous reporting through a third-party hotline, web form, or email.
2
The Audit Committee oversees complaints, and a Compliance Officer investigates viable claims under its direction.
3
However, there is no explicit evidence of independent investigation processes. The company had a material weakness related to income tax provision that resulted in the restatement of unaudited condensed consolidated financial statements for the quarters and year-to-date periods ended March 31, 2022, June 30, 2022, and September 30, 2022.
4
LegalZoom has an Anti-Corruption Policy, and its Code of Business Conduct and Ethics incorporates guidelines to deter wrongdoing and promote compliance with anti-bribery and anti-corruption laws.
5
However, the articles do not provide details on training frequency or effectiveness metrics for this policy. The company relies on third-party providers for various services and performs diligence on certain service providers that have access to systems, data, or facilities, which may include a review of their internal and/or external security audits and certifications.
6
The extent of independent verification of ethical claims is not specified beyond this.

Kind to Animals

0

LegalZoom.com, Inc. operates as an online legal solutions provider, offering services such as business formation and estate planning.

1
The company's business model is service-oriented and does not involve physical products, animal-derived ingredients, animal testing, animal husbandry, or direct impact on wildlife habitats. Therefore, all KPIs related to these activities are not applicable.

No War, No Weapons

0

The provided articles do not contain any specific, concrete data points or facts related to LegalZoom's involvement with arms manufacturing, military contracts, dual-use technologies, sales to embargoed regimes, peacebuilding investments, or any other metrics relevant to the 'No War, No Weapons' ethical value.

1
2
3
4
5
Therefore, no KPIs can be scored based on the available evidence.

Planet-Friendly Business

0

LegalZoom.com, Inc. installed a 260 kW rooftop solar electric system at its Austin, Texas office, which is estimated to produce 345,800 kWh annually and reduce CO2 emissions by 224 tons per year.

1
However, this information does not provide the necessary context, such as total company-wide energy consumption or total emissions, to score the relevant KPIs. An overall ESG Risk Rating of 24.6 (Medium) was noted, but without underlying specific metrics, it cannot be used to score any of the defined KPIs.
2
No other specific, quantifiable data is available in the provided articles to assess performance against the 'Planet-Friendly Business' KPIs.

Respect for Cultures & Communities

0

No quantitative data or specific information relevant to any of the KPIs for 'Respect for Cultures & Communities' was found in the provided articles. Several articles were inaccessible due to 404 errors or throttling, and others explicitly stated a lack of quantitative data regarding social impact initiatives and the requested metrics.

1

Safe & Smart Tech

0

LegalZoom reported zero major security breaches in 2023.

1
The company invested $8.7 million in cybersecurity infrastructure in 2023, which represents approximately 1.35% of its 2022 revenue of $644 million.
2
LegalZoom holds several certifications, including PCI, HIPAA, SOC 2, ISO 27001, FedRamp, and CSA Star Level 1.
3
The company encrypts 100% of its documents and uses industry-standard SSL/TLS for payment information.
4
Users can access, update, and request deletion of personal information via online form, email, or phone.
5
Multi-factor authentication is implemented for customer accounts.
6
LegalZoom monitors systems for vulnerabilities and retains data only as needed for service provision and compliance.
7
The company states its infrastructure is compliant with GDPR and CCPA, and its platform is ESIGN Act and UETA compliant.
8
The privacy policy mentions striving to apply Privacy-by-Design principles.
9

Zero Waste & Sustainable Products

0

No specific, concrete evidence was found regarding LegalZoom's performance in waste diversion, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design, waste reduction initiatives, hazardous waste management, product durability, repairability, waste audit frequency, zero waste certification, waste disposal violations, material efficiency, packaging-to-product ratio, waste reduction targets, supplier waste requirements, or customer waste education. The provided articles primarily offer general business advice, market trends, or financial information, rather than specific actions or metrics related to LegalZoom's own waste and sustainability practices.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.