NetworkWorld reports that the State of Washington has sued an SEO firm for a variety of infractions, including making claims that they can increase traffic to clients' websites, falsely claiming affiliations with other marketers, making claims that customer service representatives are available for any calls (though they never returned calls), failing to provide refunds, continuing to bill credit cards of customers who have canceled, and failing to register with the Department of Licensing as a commercial telephone solicitor.
In the past four years, 90 complaints have been lodged against the company, which uses the name Visible.net.
Is this lawsuit a good thing? A few people are a bit worried. How many SEOs promise a lot but deliver below expectations because competitors overdeliver and the algorithm changes [drastically], despite all that you've done? It can happen. While some say that this is a plea aimed at snake oil sellers, if a client is unhappy with legitimate SEO work, what's to say they won't consider you a snake oil salesman?
On another note, how come nobody has sued those companies that send you mailers claiming to be your domain registrar and wanting to renew your domain for a few years (at least to my knowledge)? Like these guys. Seriously -- I'm sure there are more than 90 complaints against those people.
Forum discussion continues at Cre8asite Forums.