Litigation: Specious claims

Feb 18th '20

The Advertising Standards Authority (ASA) previously investigated complaints about solicitors who advertised in a way that irresponsibly generated specious litigation.


From 1 April 2019, the Financial Conduct Authority (FCA) assumed responsibility for the regulation of claims management companies, including Personal Injury claims (CMCOB 3.2.8) and “No Win, No Fee” agreements (CMCOB 3.2.9).. Ads for these agreements should adhere to the guidelines given in the ‘Financial promotions and communications with customers’ section of the Claims Management: Conduct of Business sourcebook (CMCOB 3).


Ads for products by FCA-regulated businesses (such as claims management companies) are likely to be outside the ASA’s remit. However, as with other financial ads, the Committee of Advertising Practice (CAP) Code does apply to “non-technical” aspects of ads for these companies, such as matters relating to offence, social responsibility, superiority claims, fear and distress, competitor denigration and claims that do not relate to specific characteristics of the product.


If an advertiser is unsure about the legislation they need to comply with, marketers should seek legal advice. A section on the FCA’s website, entitled Financial Promotions, gives general advice such as ‘Key Issues’ and ‘FAQs’. Please note, however, that the FCA does not pre-approve proposed financial marketing communications for authorised firms – technical guidance is available on specific matters or rule interpretations only, not on the advertisement as a whole. See the FCA’s website for more information


Source: CAP


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 ASA. CAP’s AdviceOnline entries provide guidance on interpreting the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing.


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