Law firm personal injury marketing networks were put under threat this week as the government announced a clampdown on advertising in the sector, branding much of it as 'unacceptable'.

Speaking to the Health and Safety Executive, where he also announced plans to regulate claims managers, the Lord Chancellor, Lord Falconer, said he was fed up with advertisements provoking people into bringing spurious claims. 'Much [advertising] is now from solicitors,' he added. 'Some is from claims management companies, but it's not always clear to the consumer which and what they are entitled to.'


Lord Falconer said: 'I will be looking into how to bring claims chancers in line. The advertising codes must be strictly adhered to. But I am prepared to go further. We... may need to take legal powers to stop some of this advertising.'


Association of Personal Injury Lawyers president Colin Ettinger said: 'The Lord Chancellor is right to say that legitimate advertising can provide a means for people with genuine claims to find the help they need,' he said. 'But there is absolutely no place for distasteful, irresponsible advertising which misleads the public.'


Manchester law firm Amelans, which set up the leading marketing network Injury Lawyers for You (IL4U), agreed that many advertisements were 'currently distasteful and misleading', but argued against a blanket ban on television advertising or other ethical marketing techniques.



'[Advertising] makes people aware of their rights and that people are on their side,' Amelans partner Andrew Twambley said. He added: 'We are confident that IL4U will be in line with whatever regulations the Lord Chancellor introduces.'


Lord Falconer also said he was not convinced of the case for raising the small claims limit in personal injury cases from £1,000 to £5,000, as insurers and their lawyers have demanded. His department is currently researching this after a recommendation from the Better Regulation Task Force.


'We will have to wait and see what the research says, but simply raising the limit will do nothing to address the underlying costs and may give rise to new problems,' he said. 'Although it might deter claims farmers and solicitors from taking on spurious claims, they would not take the genuine claims either.'