ABA Standing Committee on Lawyer Referral and Information Service. Ethics 20/20 Toronto, Canada. Ann S. Jacobs & Sheldon J. Warren

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1 ABA Standing Committee on Lawyer Referral and Information Service Ethics 20/20 Toronto, Canada Ann S. Jacobs & Sheldon J. Warren

2 Rule 7.2: Advertising A lawyer shall not give anything of value to a person for recommending the lawyer s services except that a lawyer may: (1) pay the reasonable costs of advertisements or communications permitted by this rule (2) pay the usual charges of a legal services plan or a not-for-profit or qualified lawyer referral service. A qualified lawyer referral service is a lawyer referral service that has been approved by an appropriate regulatory authority;

3 Rule 7.2: Advertising A lawyer shall not give anything of value to a person for recommending the lawyer s services except that a lawyer may: (1) pay the reasonable costs of advertisements or communications permitted by this rule (2) pay the usual charges of a legal services plan or a not-for-profit or qualified lawyer referral service. A qualified lawyer referral service is a lawyer referral service that has been approved by an appropriate regulatory authority;

4 What does recommend mean?

5 Comment 5: Lawyers are not permitted to pay others for recommending the lawyer s services. A communication contains a recommendation if it endorses or vouches for a lawyer s credentials, abilities or qualities.

6 Comment 5: Moreover, a lawyer may pay others for generating client leads, such as Internetbased client leads, as long as the person does not recommend the lawyer...

7 Report: III (A) In particular, the Commission proposes to add new language to Comment [5] that defines the term recommending so that it is clear that lawyers can take advantage of new forms of lead generation, such as pay-per-click and payper-lead services available on the Internet, as long as the marketing method does not involve conduct that is inconsistent with the lawyer s professional obligations (e.g., misleading communications, impermissible fee sharing, in person solicitations, etc.)

8 Pay per Click vs. Pay per Lead

9 Yellow Pages

10

11 Consumer opens book & searches for Attorneys

12 Consumer Finds Alphabetical Attorney Listings

13 & Paid Attorney Ads

14 Internet

15 Consumer goes on internet & searches for Attorneys

16 Consumer finds nonad listing of attorneys (aka organic results)

17 Paid ads show up at the top

18 They are labeled Ads

19 More ads are found labeled on the side

20 These ads are called Pay per Click

21 They are called Pay per Click because you pay only when someone clicks on your ad

22 Paid Ads Regular Listings

23 Pay per Lead

24 Consumer searches for lawyer referral

25 Non-ad results

26 Paid Ad Results

27 Find Expert Lawyers Search for Legal Specialists

28 Legal Consultations by Area Lawyers

29 Third Party Aggregators

30 If you have a legal matter and you want to make contact with a prescreened local lawyer in your area, then present your case now!

31 Pre-screened by whom & for what?

32 Experienced Attorney Legal Help Find Experienced Attorneys in all US locations

33 What does an attorney need to show to join?

34 How long does it take to get started? Just as soon as we nail down the available counties and practice areas you would like to receive, set a price per ad response for them, calculate a pre-pay deposit toward ad response and invoice you, we can get started putting your information into our system.

35 No mention of verifying/checking the experience of the attorneys

36 What is this most similar to?

37

38 Why do we have the no recommendation rule in the first place?

39

40

41 Non-Attorneys paid to land clients

42 Florida Grand Jury Report: 2000 In addition to the ban on solicitation imposed by F.S (8), doctors, lawyers, and chiropractors are prohibited by their respective ethical rules from contacting potential clients or patients in person or by telephone. As a result unethical practitioners will turn to runners to do the dirty work.

43 Florida Grand Jury Report: 2000 Over 20 years ago a Dade County Grand Jury criticized this practice of "ambulance chasing."

44 Prohibition against runners / case wranglers is codified in the no recommendation rule

45

46 AZ, WA, KY & NY: Prohibited

47 TX & OH: Permissible Advertising but no assertions of qualifications

48 SC: Impermissible referral service / not advertising

49 NJ: Even when trying to avoid impermissible lawyer referral service, may still be misleading

50 Recommendations

51 Recognize the important distinction between pay per click and pay per lead

52 Maintain the prohibition against paid referrals both in the rules, comments and report

53 Provide a clear analytical framework to assist attorneys and states in evaluating whether a given pay per lead service is permissible under the ethical rules

54 Sample Language: Lawyers may not participate in a pay-per-lead service that:

55 (1) recommends its subscribing lawyers; or

56 (2) otherwise make claims about the competence or character of its subscribing lawyers; or

57 (3) states or implies that it will analyze the prospect s legal problem in order to find a suitable lawyer; or

58 (4) fails to disclose that its subscribing lawyers have paid to be listed with the service.

59 ABA Standing Committee on Lawyer Referral and Information Service Ethics 20/20 Toronto, Canada Ann S. Jacobs & Sheldon J. Warren

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