Senator Umberg’s measure overhauls California’s attorney advertising and lawyer referral‑services regime by introducing new private civil actions for false or deceptive advertising and expanding both who can sue and what remedies are available. It creates private rights of action for violations by runners or capper activities near prisons and other settings, and for misrepresentations related to lawyer referrals. The remedies include statutory damages ranging from five thousand to one hundred thousand dollars per violation (or three times actual damages, whichever is larger), plus attorney’s fees, injunctive relief, and other court orders, with damages determined by factors such as the nature and seriousness of the misconduct, its duration and persistence, willfulness, and the defendant’s financial condition. The right of action operates independently of government enforcement actions.
To regulate the referral ecosystem, the measure requires State Bar certification and compliance with minimum standards approved by the Supreme Court. It restricts ownership so that lawyers who receive more than twenty percent of referrals cannot own or operate the referral service, while providing exemptions for certain nonprofit or other entities. The State Bar would administer a certification regime, with fees and potential waivers, and establish requirements for minimum standards, ongoing access protections for persons with limited means, and insurance or other financial-responsibility safeguards for lawyers who participate in certified referral services. The bill preserves permissible joint advertising, but requires a joint advertising arrangement in which participating attorneys expressly assume liability for the advertising content.
The advertising provisions themselves are expanded and clarified. Prohibited practices include guarantees of outcomes, statements of immediate cash or quick settlements, impersonations of lawyers or clients, celebrity endorsements without disclosures, contingent-fee representations without disclosure of potential client costs, and misrepresentations about a lawyer’s skills or awards. Advertisements must conspicuously disclose at least one California-licensed lawyer or the law firm and the advertising service or joint advertiser, along with the location information for the lawyer or firm; joint advertising disclosures must accommodate platforms with display or time limitations by linking to a page containing full disclosures. A consumer misled by an advertisement may file a complaint with the State Bar, and the Bar must review within a defined period to determine substantial evidence of a violation; withdrawal of the challenged ad within specified windows can limit or terminate civil actions, while failure to withdraw can permit enforcement actions. The bill also expands disciplinary authority to cover violations of the advertising provisions.
Implementation would hinge on rulemaking to establish minimum standards, certification procedures, and the specifics of the insurance and fee regimes, with the Supreme Court’s involvement for approving standards. The measure envisions a broader enforcement framework that could affect both civil litigation and professional discipline, potentially increasing both compliance costs for attorneys and referral networks and caseloads for the courts. Broadcasters remain exempt from certain advertising provisions, maintaining media exemptions while extending the regime to other advertising channels. The text does not specify an explicit effective date, leaving transition details to implementing regulations and any action by the Governor.
![]() Tom UmbergD Senator | Bill Author | Not Contacted |
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Senator Umberg’s measure overhauls California’s attorney advertising and lawyer referral‑services regime by introducing new private civil actions for false or deceptive advertising and expanding both who can sue and what remedies are available. It creates private rights of action for violations by runners or capper activities near prisons and other settings, and for misrepresentations related to lawyer referrals. The remedies include statutory damages ranging from five thousand to one hundred thousand dollars per violation (or three times actual damages, whichever is larger), plus attorney’s fees, injunctive relief, and other court orders, with damages determined by factors such as the nature and seriousness of the misconduct, its duration and persistence, willfulness, and the defendant’s financial condition. The right of action operates independently of government enforcement actions.
To regulate the referral ecosystem, the measure requires State Bar certification and compliance with minimum standards approved by the Supreme Court. It restricts ownership so that lawyers who receive more than twenty percent of referrals cannot own or operate the referral service, while providing exemptions for certain nonprofit or other entities. The State Bar would administer a certification regime, with fees and potential waivers, and establish requirements for minimum standards, ongoing access protections for persons with limited means, and insurance or other financial-responsibility safeguards for lawyers who participate in certified referral services. The bill preserves permissible joint advertising, but requires a joint advertising arrangement in which participating attorneys expressly assume liability for the advertising content.
The advertising provisions themselves are expanded and clarified. Prohibited practices include guarantees of outcomes, statements of immediate cash or quick settlements, impersonations of lawyers or clients, celebrity endorsements without disclosures, contingent-fee representations without disclosure of potential client costs, and misrepresentations about a lawyer’s skills or awards. Advertisements must conspicuously disclose at least one California-licensed lawyer or the law firm and the advertising service or joint advertiser, along with the location information for the lawyer or firm; joint advertising disclosures must accommodate platforms with display or time limitations by linking to a page containing full disclosures. A consumer misled by an advertisement may file a complaint with the State Bar, and the Bar must review within a defined period to determine substantial evidence of a violation; withdrawal of the challenged ad within specified windows can limit or terminate civil actions, while failure to withdraw can permit enforcement actions. The bill also expands disciplinary authority to cover violations of the advertising provisions.
Implementation would hinge on rulemaking to establish minimum standards, certification procedures, and the specifics of the insurance and fee regimes, with the Supreme Court’s involvement for approving standards. The measure envisions a broader enforcement framework that could affect both civil litigation and professional discipline, potentially increasing both compliance costs for attorneys and referral networks and caseloads for the courts. Broadcasters remain exempt from certain advertising provisions, maintaining media exemptions while extending the regime to other advertising channels. The text does not specify an explicit effective date, leaving transition details to implementing regulations and any action by the Governor.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
37 | 0 | 3 | 40 | PASS |
![]() Tom UmbergD Senator | Bill Author | Not Contacted |