Lawyer referral fees to be capped in Ontario; advertising rules changing
TORONTO — The body that regulates lawyers in Ontario has opted for a cap on referral fees rather than an outright ban, and made various changes to advertising rules.
In a vote Thursday, benchers of the Law Society of Upper Canada decided on a yet-to-be-determined cap after considering a report from a working group that delved into the issue of advertising and referral fees — those a lawyer pays to another lawyer for sending along a client.
“With these changes, the law society is establishing new and stronger measures to protect the public,” Treasurer Paul Schabas said in a statement. “Capping referral fees and taking steps to make certain the client is fully aware of their options will ensure that it is the client who benefits from the referral.”
While details of the cap have yet to be worked out and voted on at a later date, advertising changes effective immediately include requiring advertisers to state whether they are a lawyer or paralegal and a ban on advertising second-opinion services — often simply used to lure clients who already have an advocate.