Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
Since April 2007, claims management firms have been regulated by the Ministry of Justice under the Compensation Act 2006. The Act provides the statutory framework for the regulation of claims management activities. The conduct of businesses authorised under the Compensation Act 2006 is governed by the Conduct of Authorised Persons Rules 2007. The MOJ has published the Marketing and Advertising Claims Management Services Guidance Note, which provides guidance to authorised businesses on the Rules and other legal requirements.
The Guidance Note requires all non-broadcast advertisements, marketing communications and other soliciting of business must comply with the CAP Code. That includes websites, which are, strictly speaking, outside the ASA’s and CAP’s remit. Although the ASA will not adjudicate on complaints about website content, the Copy Advice team will try to help marketers by giving advice on websites. Marketers should note that the Rules and the Guidance Note specifically state that the use of the expression “no win, no fee” must be in accordance with the CAP Help Note. The Rules and the Guidance Note are available on the www.claimsregulation.gov.uk website; the Help Note is on the CAP website.
The ASA has upheld complaints about directory advertisements for claims management companies (Compensation Claims, 31 July 2002, and Easy Claims, 10 July 2002). Because the advertisements appeared in the “solicitors” section of the directory, the ASA considered that readers were likely to infer they would be dealing with solicitors whereas they were not. As with will writers, marketers should not imply they are legally qualified if they are not. Consequently, marketers are urged not to advertise under the heading ‘Solicitors’ or ‘Legal Services’ but, if they have no option, they should make clear they are not solicitors or explain, if relevant, that they refer customers to an independent solicitor. In 2002, the ASA upheld a complaint about an ad that appeared in the ‘Solicitors’ section of a directory and claimed “All claims are handled by our panel of independent expert personal injury solicitors …”. The ASA believed readers could infer that the advertiser had a team of solicitors and was more than merely a referral service (Compensation Helpline, 31 July 2002).
See ‘Will Writers’ and 'Litigation: No Win, No Fee Claims'.
Last modified : 02 May 2012