Heavy Fines for Pressuring People Into Compensation Claims (aka Claim Farming)
Statutes Amendment (Claim Farming)
1st House
2nd House
Law
Effects of Bill:
This bill being passed means that:
the Legal Practitioners Act 1981 (SA) will introduce a ban on claim farming – where people are pressured to make compensation claims through cold calls, online ads, or third-party referral businesses.
it will become an offence to solicit or pressure someone to make a personal injury claim for profit.
law firms and lawyers will be prohibited from paying or receiving fees for claim referrals from claim farmers
the Civil Liability Act 1936 (SA) will be updated to prevent claim farmers from operating in relation to personal injury or motor accident claims
penalties for claim farming conduct will include fines of up to $100,000 for individuals and $500,000 for corporations
lawyers will be required to make disclosure statements that they have not engaged in claim farming when taking on new clients
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