A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 39-5-39, RELATING TO AN ATTORNEY ADVERTISING IN A FALSE, DECEPTIVE, OR MISLEADING MANNER, SO AS TO DEFINE FALSE ADVERTISING; TO PROVIDE THAT ANY ADVERTISING FOR LEGAL SERVICES THAT REFERENCES A SETTLEMENT OBTAINED ON BEHALF OF A CLIENT MUST DISCLOSE THE AMOUNT OF ATTORNEY FEES AND LITIGATION COSTS DEDUCTED FROM THE RECOVERY; TO REQUIRE THE LEGAL ADVERTISEMENT TO CLARIFY THAT ANY REFERENCED RESULTS ARE NOT REPRESENTATIVE OF ALL CASES AND THAT OUTCOMES DEPEND ON THE SPECIFIC FACTS OF EACH CASE; AND TO PROVIDE THAT ANY ADVERTISING FOR LEGAL SERVICES THAT STATES THAT THE FILING OF A LAWSUIT IS AGAINST AN INSURANCE COMPANY OR OTHER THIRD PARTY MUST DISCLOSE THE FACT THAT ANY LAWSUIT WOULD BE FILED AGAINST AN INDIVIDUAL OR BUSINESS THAT WOULD BE NAMED AS THE DEFENDANT AND THAT THE INSURANCE COMPANY IS ONLY PROVIDING THE COVERAGE ON BEHALF OF THE NAMED INDIVIDUAL OR BUSINESS BASED ON A POLICY PURCHASED BY THE INDIVIDUAL OR BUSINESS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 39-5-39 of the S.C. Code is amended to read:

 

    Section 39-5-39. (A) Advertising shall be deemed false, deceptive, or misleading if it:

       (1) contains any statement, implication, or inference that guarantees, assures, or promises a particular outcome, recovery, verdict, settlement amount, or success rate;

       (2) suggests that past results, case outcomes, or client recoveries are indicative of future results, unless accompanied by a clear and prominent statement that prior results do not guarantee a similar outcome; or

       (3) uses superlative, comparative, or predictive language that cannot be substantiated and that would reasonably lead a prospective client to expect results that are not typical or reasonably achievable.

    (B) Notwithstanding another provision of law, it is an unlawful trade practice, pursuant to Section 39-5-20, for an attorney to advertise his services in this State in a false, deceptive, or misleading manner including, but not limited to, the use of a nickname that creates an unreasonable expectation of results.

    (C)(1) Any advertising for legal services, in whatever form or medium, that references, depicts, or states a specific dollar amount of a settlement, verdict, judgment, or recovery obtained on behalf of a client must clearly and conspicuously disclose, in close proximity and in a similar size to the referenced dollar amount, the amount or percentage of attorney fees deducted from the recovery and the amount of litigation costs or expenses deducted from the recovery.

       (2) Such advertising for legal services must also disclose, in a clear and prominent manner, that the referenced result is not representative of all cases and that outcomes depend on the specific facts and legal circumstances of each matter.

    (D) Any advertising for legal services, in whatever form or medium, that references, depicts, or states that the filing of a lawsuit or legal claim or suggesting that the lawsuit or claim is against an insurance company or other third party must disclose clearly and conspicuously, in close proximity and in a similar size, the following disclosure or substantially similar language: "Any lawsuit would be filed against an individual or business that would be named as the defendant and that the insurance company is only providing the coverage on behalf of the named individual or business based on a policy purchased by the individual or business."

    (E) A violation of subsections (C) or (D) constitutes an unfair trade practice enforceable exclusively by the Department of Consumer Affairs who shall seek both monetary and injunctive relief.

    (F) A violation of this section does not create any private cause of action for a violation of this section.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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