The company often compares itself to lawyers when comparing fees and even uses a lawyer in its commercials.  The fast talker at the end of each commercial typically says that they are not a law firm and they do not provide legal services, which is of course true.  Merely providing document preparation software or documents to do-it-yourself is not the practice of law.  Its plain however Legal Zoom is something else.  Its also true they do not compete with lawyers since their services seem to appeal to more marginal and unsophisticated people who would never hire lawyers and would not realize they are overpaying for a template filling service that fills forms that without much more effort can be obtained for free.

The problem may be these unsophisticated people are being had by a company that simultaneously says they are cheaper then a lawyer, do the same thing, and yet, are not really lawyers.