If you are required to
furnish a written statement (Copy B or an acceptable
substitute) to a recipient, then you may furnish the
statement electronically instead of on paper.
This includes
furnishing the statement to recipients of Forms 1097-BTC,
1098, 1098-E, 1098-T, 1099-A, B, C, CAP, DIV, G, H, INT,
K, LTC, MISC, OID, PATR, Q, R, S, SA, 3921, 3922,
5498, 5498-ESA, and 5498-SA. It also includes Form
W-2G (except for horse and dog racing, jai alai,
sweepstakes, wagering pools, and lotteries).
Prior to furnishing the statements electronically, you
must provide the recipient a statement with the following
statements prominently displayed.
If the recipient does not consent to receive the
statement electronically, a paper copy will be provided.
The scope and duration of the consent. For example,
whether the consent applies to every year the statement is
furnished or only for the January 31 or February 15, as
applicable, immediately following the date of the consent.
How to obtain a paper copy after giving consent.
How to withdraw the consent. The consent may be
withdrawn at any time by furnishing the withdrawal in
writing (electronically or on paper) to the person whose
name appears on the statement. Confirmation of the withdrawal also will be in writing (electronically or on
paper).
Notice of termination. The notice must state under what
conditions the statements will no longer be furnished to
the recipient.
http://www.irs.gov/pub/irs-pdf/i1099gi.pdf
So, in other words, the company may have sent your father a form letter saying they were going to send statements electronically, like the annual privacy statements that are required, and your father does not remember it or tossed it like almost all of do when we get such notiifications.