$890 million in advertising for clients?

From Forbes today comes this, “Lawyers Bump Advertising Spending to $890 Million in Quest for Clients.”

A few highlights:

The phrase “San Antonio car wreck attorney” is the most expensive search string on the Web, at $670 per click, followed by “Accident attorney Riverside CA,” at $626. In fact, 23 of the 25 most expensive search terms involve lawyers and litigation, according to a new survey by the U.S. Chamber’s Institute for Legal Reform, which doesn’t think much of lawyer advertising.

Defying the trend toward declining television advertising spending, lawyers have increased their spending by 68% over the past eight years to an expected $892 million this year, the ILR reports, as law firms seek clients for lawsuits over prescription drugs, medical devices and asbestos.

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The ILR study paints a portrait of an industry that knows where its customers are – often in front of a television set, watching afternoon programs, or searching the web for information about a medical condition – and knows how to get their attention.

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Law firm spending on TV ads has been rising six times faster than overall spending since 2008, the study found.

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Lawyers have also flooded the Internet and social media with their messages, buying search terms and linking up with “influencers” and “Super Tweeters” who write about litigious subjects on Facebook and Twitter.

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The Institute for Legal Reform thinks all this advertising stimulates too much litigation, and the example of pelvic mesh implants may demonstrate their point. But plaintiff lawyers and some academics make exactly the opposite argument: Advertising helps drive more socially useful litigation by people who otherwise might not realize they have a valid claim.

The U.S. Supreme Court has held the First Amendment applies to lawyers, too, noted Anthony Sebok, a professor at Cardozo Law School in New York who writes frequently on the merits of greater involvement in civil litigation. “Big Pharma is doing the same thing as Big Tort,” he noted in an e-mail to me, by advertising directly to consumers in order to prompt them to ask their physicians for prescription drugs. The important distinction is between advertising for potential clients and invading their privacy by directly contacting them after an accident or medical mishap.

“Obviously the line between advertising and solicitation is a hard one to draw, but at no time have the courts worried about the interests of defendants when talking about where to draw the line,” Sebok told me.  “The concern is for the victims of accidents, who shouldn’t be harassed and pressured, and the state’s interest in maintaining the reputation of the legal profession.”

Yet another challenge to the Florida Bar advertising regulations

The personal injury law firm of Searcy Denney Scarola Barnhart & Shipley PA sued the Florida Bar challenging two aspects of its rules concerning lawyer advertising.  On September 30, 2015, Judge Hinkle from the Northern District ruled that the challenge to the requirements that references to past results must be “objectively verifiable” was not yet ripe for review.

The lawsuit also challenged the Florida Bar’s ban on truthful statements regarding a lawyer’s specialty or expertise, absent certification under the Florida Bar certification program or some outside certifying organization. Judge Hinkle found that this rule failed all three prongs of the Central Hudson analysis, and granted the plaintiff’s summary judgment motion in part.

I expect this is not the last word from the federal courts on Florida’s efforts to regulate lawyer advertising. Stay tuned.

See Christian D. Searcy et. al v. The Florida Bar, 2015 WL 5769238

APRL’s Advertising Committee Issues Report

Relevant to Chapter 3: see ASSOCIATION OF PROFESSIONAL RESPONSIBILITY LAWYERS 2015 REPORT OF THE REGULATION OF LAWYER ADVERTISING COMMITTEE . The opening paragraph of the Executive Summary states: “The rules of professional conduct governing lawyer advertising in effect in most jurisdictions are outdated and unworkable in the current legal environment and fail to achieve their stated objectives. The trend toward greater regulation in response to diverse forms of electronic media advertising too often results in overly restrictive and inconsistent rules that are under-enforced and, in some cases, are constitutionally unsustainable under the Supreme Court’s Central Hudson test. Moreover, anticompetitive concerns, as well as First Amendment issues, globalization of the practice of law, and rapid technology changes compel a realignment of the balance between the professional responsibility rules and the constitutional right of lawyers to communicate with the public.  ……

Based on the survey results, anecdotal information from regulators, ethics opinions, and case law, the Committee concludes that the practical and constitutional problems with current state regulation of lawyer advertising far exceed any perceived benefits associated with protecting the public or maintaining the integrity of the legal profession, and that a practical solution to these problems is best achieved by having a single rule that prohibits false and misleading communications about a lawyer or the lawyer’s services. The Committee believes that state regulators should establish procedures for responding to complaints regarding lawyer advertising through non-disciplinary means. Professional discipline should be reserved for violations that constitute misconduct under ABA Model Rule 8.4(c).3 The Committee recommends that violations of an advertising rule that do not involve dishonesty, fraud, deceit, or misrepresentation under Rule 8.4(c) should be handled in the first instance through non-disciplinary means, including the use of advisories or warnings and the use of civil remedies where there is demonstrable and present harm to consumers.

Florida Bar Changes Advertising Policy on “Past Results”

The Florida Bar Board of Governors has voted to drop its advertising guideline on “past results.” The prior interpretation was that it was inherently misleading to state past results in any lawyer advertisement. The Florida Bar acted In response to Judge Beth Bloom’s decision in Rubenstein v. Florida Bar (discussed in my blog post of December 10). In addition, the Bar had commissioned a survey by Frank N. Magid & Associates to survey whether the public was misled by advertising reporting past results. This Magid survey did not support this hypothesis.

For more on these recent developments, see the Florida Bar News, January 1.

http://www.floridabar.org/DIVCOM/JN/jnnews01.nsf/cb53c80c8fabd49d85256b5900678f6c/c7aaf9d47e1c0b8d85257db100723587!OpenDocument&Highlight=0,past,results*

From my perspective, most interesting are the statements of Bar President Bill Coleman in the Florida Bar News which suggest that the Bar is re-examining its policy of requiring advance filings with the Bar of all billboard, radio, television and direct mail ads.

Let’s see what 2015 brings in this ongoing debate.

Debate on Lawyer Advertising in Florida Continues

Attorney Robert Rubenstein has sued the Florida Bar over its new and improved 2013 attorney advertising rules. Following the issuance of the new regulations, Rubenstein developed an advertising campaign that included information regarding past recoveries for clients. Consistent with the Florida Bar’s procedures, these ads were submitted for review, and the Florida Bar issued opinion letters which reported that the past performance advertisements complied with the revised Rules.

View an example of the advertisements in question at https://www.youtube.com/watch?v=MFjHTQF4dkQ

By early 2014, the Florida Bar issued new guidelines regarding advertising past results, and then the Bar notified Rubenstein that it was withdrawing its opinion letter on compliance. By March 2014, Rubenstein sued the Florida Bar on first amendment grounds.

In the instant case, heard by Federal Judge Beth Bloom, the Florida Bar challenged jurisdiction on the basis of standing and ripeness. Judge Bloom disagreed and denied the Florida Bar’s motion.”Plaintiffs have clearly demonstrated a very real threat of prosecution for engaging in their advertisement of past results.”  The slip opinion is available at 2014 WL 6610972.

OTHERWISE: Law School Marketing and Legal Ethics by Ben Trachtenberg :: SSRN

OTHERWISE: Law School Marketing and Legal Ethics by Ben Trachtenberg :: SSRN.

University of Missouri law prof Ben Trachtenberg presents a new paper

This article exposes how pitches aimed at prospective students, including the seemingly straightforward recitation of statistics on law school websites, still paint an unduly rosy picture of the legal employment market. Focusing on Rule 8.4(c) of the Model Rules of Professional Conduct, the article explains that law school officials have exposed themselves to professional discipline, which may offer a solution to the pervasive problem of misleading law school marketing.