The Solicitors Regulation Authority (SRA) has issued a new warning notice on misleading B2C marketing, with a particular focus on volume consumer claims and unsolicited approaches to members of the public. This follows growing concerns that some law firms and claims management companies are using aggressive, misleading, or non-compliant marketing tactics to attract clients.
Why has the SRA issued this warning?
The SRA has been monitoring high-risk areas of legal services, particularly in consumer claims such as mis-sold financial products, diesel emission cases, housing disrepair, and personal injury. The regulator has identified instances where firms:
- Make exaggerated or misleading statements about the likelihood of success.
- Omit key information about fees, risks, or eligibility criteria.
- Use pressure tactics to encourage clients to sign up.
- Fail to properly oversee third-party marketing (e.g., lead generators or claims management companies).
- Engage in unsolicited direct marketing, such as cold calls, emails, or texts, which may breach both SRA rules and data protection laws.
The warning notice makes it clear: firms engaging in misleading marketing practices or unsolicited approaches risk disciplinary action.
Key compliance points for law firms
The SRA expects firms to take proactive steps to ensure their marketing is transparent, fair, and compliant. Here are the key takeaways:
- Be clear and accurate
- Any claims about the chances of success must be realistic and evidence-based.
- Avoid sensationalist language (e.g., “Guaranteed Payouts!” or “No Win, No Fee – No Risk!”).
- Disclose key terms upfront
- Clients must be fully informed about the true costs, risks, and eligibility criteria before engaging the firm.
- Hidden deductions or unclear conditional fee arrangements could be deemed misleading.
- Monitor third-party marketing
- Firms are responsible for ensuring any lead generators or marketing agencies they work with are compliant.
- Ignorance is no excuse—firms must conduct due diligence on their marketing partners.
- Avoid pressure tactics and unsolicited approaches
- Clients should not feel pressured to sign up immediately.
- Cold calling, unsolicited emails, and other direct approaches targeting potential clients are likely to fall foul of data protection laws and SRA regulations.
- Review all marketing materials regularly
- Firms should carry out periodic compliance audits on their websites, advertisements, and social media.
- The SRA has indicated it will take enforcement action against non-compliant firms.
Points to note
- The intricacies of the costs outcomes for Conditional Fee Agreements are extremely complex and arguably impossible to communicate effectively in a short marketing message. Even with disclaimers, the potential for clients to misunderstand remains high, creating risks for both clients and firms. This raises questions about whether CFAs can ever truly be marketed in compliance with the SRA’s warning notice requirements.
- The distinction between targeted and non-targeted advertising in digital spaces is unclear. Pay-per-click (PPC) campaigns, for example, could fall into either category depending on how they are structured and delivered. The guidance does not provide clarity on this, leaving firms at risk of inadvertently breaching the rules in their digital marketing strategies.
What happens if a firm breaches the rules?
The SRA has been ramping up investigations into misleading marketing, and firms found to be in breach could face regulatory fines, disciplinary action or serious reputational damage.
Given the SRA’s increasing scrutiny, firms handling high-volume consumer claims should take immediate steps to ensure their marketing is fully compliant. Now is the time to review marketing practices, update risk assessments, and strengthen compliance oversight.
Read the full SRA warning notice here.
