>> This is one very, very limited instance in which Id support the government stepping in <<
There might not need to be direct government intervention. Perhaps a university or individual professor could sue the Dallas company and/or others like it under existing anti-fraud or anti-racketeering statutes.
For example, there are federal laws forbidding use of interstate wire communications to commit fraud, and a sympathetic federal judge might allow a RICO action to go forward.
Or at the state level, an old-fashioned tort case might go forward under common law, even where specific local laws have not been enacted.
Anyway, this is one area where I think we could applaud aggressive steps by the damage-suit lawyers!
It seems like quiet a stretch to lump cheating on a college exam in with legal fraud. Any attorneys out there care to comment?