Regulators order firms to pull misleading claim ads after uncovering hidden costs and false promises
The UK’s advertising regulator has ordered three law firms to stop running misleading online adverts that promised large sums in compensation but failed to explain the true cost of pursuing claims. The Advertising Standards Authority (ASA) issued rulings against Johnson Law Group, Jones Whyte Law and KP Law, each of which is regulated by the Solicitors Regulation Authority. The decision followed complaints from the business lobby group Fair Civil Justice and comes as the SRA begins its own investigation into the group litigation sector.
The ASA reviewed multiple campaigns and concluded that the firms had omitted material information and presented misleading claims about fees and potential outcomes. In the case of Johnson Law Group, the firm had promoted diesel emissions claims in paid adverts on Google and Facebook which stated that drivers could be owed up to £10,000. One ad told consumers: “There’s a chance for you to claim up to £10,000 in compensation. Just grab your car’s registration number, head over to dieselcheck.com and boom, instantly find out if you’re eligible to claim those thousands.” The firm also claimed it operated on a no win, no fee basis. However, clients were required to pay up to 50% of damages plus a £70 fee for legal expenses insurance. Johnson Law Group said all charging terms were set out on its website and that consumers were asked to review them before electronically signing. The firm admitted, however, that many clients did not check the terms. The ASA found the adverts did not make clear that an electronic signature created a legally binding contract and that key wording was presented in smaller and less prominent font. The regulator said consumers were likely to sign without understanding the consequences and ruled the adverts misleading.
Embed from Getty ImagesJones Whyte Law came under scrutiny for Facebook adverts promoting data breach claims. These stated there were “no upfront costs” and that cases were handled on a no win, no fee basis. While technically correct, the ASA found that the adverts omitted critical details about fees. The firm deducted up to 40% of any damages awarded and charged for insurance cover, but this information was not presented in the adverts or provided to clients before they made a decision about proceeding. The regulator concluded the omission of such charges amounted to misleading advertising.
The ruling against KP Law related to referrals from a single claims generator called Join the Claim. The website stated that consumers would not be charged to join a claim, but it could receive a fee from the law firm to which cases were referred. All leads were passed to KP Law, which charged clients up to 25% of compensation in successful cases. While no other costs were payable, the ASA found that the way this fee structure was presented failed to provide sufficient information about how charges were calculated and misled consumers.
The ASA has now directed the firms to change their advertising practices. Johnson Law Group must not state specific compensation amounts in future campaigns, Jones Whyte must disclose all material information on fees and insurance charges, and KP Law along with Join the Claim must make clear that their adverts are intended to generate leads for a single law firm and must identify that firm by name. The watchdog stated that the practices uncovered in these rulings undermined consumers’ ability to make informed decisions and posed a risk of individuals being lured into costly commitments without full knowledge of the terms. None of the adverts in question may appear again in their current form, and all three firms are required to comply with the restrictions immediately.