Mass legal compensation ads can be costly and risky for consumers. Those who withdraw from claims can face hefty charges, and even successful claimants may experience significant deductions from compensation awarded. Three key ASA rulings highlight recurring pitfalls in the way these services are promoted and set out clear steps advertisers must take to fix them.
Show Your Fees Upfront – No Win, No (Hidden) Fee
If your ad says “no win, no fee”, the ASA expects you to set out in the ads or at least on the landing pages, before any contracts are signed, how that works: how fees and charges are calculated in a successful claim, including the percentage fee deducted from compensation; and that clients may be liable for costs in some circumstances. Burying this in FAQs or later retainer documents breaches CAP Code 3.1, 3.3 and 3.9. (See CAP Guidance on Misleading advertising: Qualifications and Litigation: Claims management).
The ASA recently ruled against ads for Join the Claim / KP Law, Jones Whyte Law and JLG Legal Ltd because they did not present material information about the fees and how they were calculated, and that consumers may be liable for costs in some circumstances, in a clear and timely manner.
Don’t Push Your Luck With “Up to £X”
Claims like “up to £10,000” must not be misleading and you must state that figures are before deductions (e.g. fees/ATE insurance) with an immediate explanation of how those work. (See CAP Guidance on Substantiation).
The ASA ruled in the ads for JLG Legal Ltd that the “up to £10,000” claims were misleading because the firm couldn’t substantiate that a significant proportion of claimants would receive that amount, and the ads didn’t make it clear that this headline figure was before the deduction of up to 50% in fees and the cost of insurance.
Make It Crystal Clear: Sign Here = Contract
If your ad asks users to e-sign, make it clear next to the signature that it forms a legally binding contract. Don’t rely on hidden links or post-signature “client care packs”. You should also ensure you comply with any legal requirements to provide people with the full terms of their contract, including costs, charges and any cancellation rights, before the agreement is made, whether the user agrees by signing, ticking a box, or giving verbal consent.
The ASA ruled that the ads for JLG Legal Ltd were misleading because they did not make sufficiently clear that e-signing the online form would immediately enter consumers into a legally binding contract to join the group action; small-print wording under the e-signature box and a document labelled “client care pack” were not enough to alert the average consumer.
Lead Generation? Lead With Transparency
If you’re a lead generator (not the law firm), say so prominently, early on the page or ad, and don’t imply you’re running the mass claim. If you’re selling all leads to a single firm, make that clear and name that firm.
Join the Claim / KP Law – the ASA ruled that the ads were misleading because they didn’t clearly show that Join the Claim was a lead generator whose business was to sell leads on to law firms (in this case, all leads went to KP Law) and didn’t make their commercial intent sufficiently clear or prominent.
What the Solicitors Regulation Authority (SRA) says
The SRA expects the law firms it regulates, and any claims management company or referrer they use, to comply with its Standards and Regulations as well as other statutory legislation. These include:
- Making sure any publicity is accurate and not misleading
- Making sure current and/or future clients have clear information to help them make informed decisions, including on costs
The relevant guidance and warning notice for firms can be found on the SRA's high-volume consumer claims web page. [link to: SRA | High-volume consumer claims | Solicitors Regulation Authority]
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