Institute for Legal Reform President Stephen Waguespack | X/stephenwags
+ Law
A. D. Bamburg | Aug 21, 2024

Institute for Legal Reform: ‘regulation and enforcement are needed to protect consumers from misleading advertisements’

The U.S. Chamber of Commerce Institute for Legal Reform (ILR) stated in an August 16 post that policymakers need to regulate "manipulative" trial attorney advertising practices to protect consumers.

"The manipulative legal advertising tactics used by trial lawyers to attract clients pose significant ethical and public health concerns," said the ILR. "While some legislative efforts and court rulings have begun to address these issues, more comprehensive regulation and enforcement are needed to protect consumers from misleading advertisements. As the legal landscape continues to evolve, it is critical for policymakers and the legal profession to work together to ensure that attorney advertising practices are transparent, truthful, and in the best interest of public health."

According to the ILR, states' ethics rules focus on banning advertisements from misleading the public about a law firm's services, not on whether the advertisements may pose a public health threat. Ads may pose a public health threat if they use "fearmongering" tactics about a medication to attract clients to a lawsuit over the medication but do not disclose that the medication is FDA approved and has not been recalled. Consumers who are prescribed the medication and see a legal ad about it may stop taking the medication without consulting their healthcare provider, potentially leading to adverse health effects.

A report from the American Tort Reform Association (ATRA) found that lawyers in New Jersey spent $105.3 million on legal services advertisements in the state in 2023. ATRA President Sherman "Tiger" Joyce said this is because "armed with more clients, they can boost settlements and payouts," leading to larger paydays for themselves. In New Jersey, Morgan & Morgan spent the most on advertising in 2023 at $15.8 million, according to the report. Morgan & Morgan was followed by Gorayeb & Associates at $4.13 million and Weitz & Luxenberg at $3.2 million. Morgan & Morgan was also the top law firm in terms of the number of ads aired in New Jersey at an estimated 130,000.

According to the report, much of law firms' advertising is conducted by aggregators who then sell new clients' information to the firms. In addition to potentially influencing consumers about medications, these advertising campaigns can also influence juries. Jurors can be influenced by advertisements to believe that if there is a lawsuit against a company over a product, the claims about the products are probably true.

Stephen Waguespack serves as president of the ILR, according to its website. The organization aims to promote a "fair legal system" that supports economic growth.

Organizations in this story