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21,500 lawyers issued warning over marketing tactics
The Victorian Legal Services Commissioner has issued a warning to over 20,000 lawyers across the state, following controversial law firm marketing tactics falling under the media’s microscope in recent weeks.
Emma Musgrave
In an email addressed to Victoria’s 21,500 lawyers on 6 July 2018, Victorian Legal Services Commissioner Fiona McLeay warned professionals to exercise care when offering their services to consumers, noting that those who engage in practices such as “claim farming”, “cold-calling” and “ambulance chasing” could potentially breach the legal profession’s codes of conduct.
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“The Australian Solicitors’ Conduct Rules 2015 generally do not forbid a lawyer paying a third party to refer potential clients to them, provided that the arrangement is fully disclosed to the potential client (Rule 12.4.3), and they are aware that they do not have to accept an invitation by the lawyer to act for them,” Ms McLeay said in her email to Victoria’s legal professionals.
“It is important here that the disclosure is properly done so that the client is fully aware of the referral arrangement, and that nothing about the arrangement is false, misleading or deceptive, offensive or otherwise not permitted (Rule 36.1).
“Any direct marketing or ‘cold-calling’ to seek out potential clients should only be done by staff of the law firm who think that they may be able to assist the potential client. Further guidance here is available in the Law Institute of Victoria Direct Marketing Guidelines.
“So called ‘ambulance chasing’ is generally where someone approaches a person soon after they have suffered an accident, trauma or injury, and then encouraging them to seek help from a particular lawyer or law firm. If this is done in a matter that is likely to harass or oppress a person affected by the recent trauma then it may well breach the rules (Rule 34.2).
“Any breach of the rules may lead to disciplinary action being taken against the lawyer. In serious cases this could impact on the lawyer’s future ability to practise. It is therefore paramount that the rules are fully complied with, and not just given lip-service.”
Ms McLeay also responded to reports of three separate law firms, who are currently unnamed, targeting a woman with these controversial tactics. According to Adviceline Injury Lawyers partner Michael Lombard, the woman was caring for her mother who was dying in hospital due to injuries and complications from a car crash.
“The story reported recently, where people representing three separate law practices allegedly intruded on a dying woman’s hospital room to drum-up business, paints an appalling picture of how lawyers might appear to operate,” Ms McLeay said.
“Even if these people were only paid spotters for law practices, it does not absolve the practices from responsibility for managing how their agents conduct themselves.”
She noted that the reported behaviour is “very concerning”.
“The fact that the vast majority of lawyers don’t behave in this way will be lost on the public at large. It’s behaviour like this that gives other lawyers a bad name,” she added.
“As the legal regulator, we want consumers to be confident in the standards of behaviour that their lawyers will uphold.”
The warning from the Victorian Legal Services Commissioner comes after Slater and Gordon were alleged to have used claim farming to nab more clientele — something that it has subsequently denied.
The news prompted an outcry from other lawyers in the profession, further debate about the issues surrounding harvesting of client information, and commentary from Law Society of NSW president Doug Humphreys, expressing concerns about the future of professional standards in Australia's legal profession.
