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'No win, no fee' TV adverts face the chop

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Law firms and claims management companies reportedly spend around £40m a year on TV advertising for 'no win, no fee' legal services.

The advertising sector, already hard-hit by the recession, could soon lose this revenue, however, as a review commissioned by former PR man David Cameron is expected to recommend a ban on adverts that he claims have created a "compensation culture" in Britain.

The 'no win, no fee' industry is worth about £400m a year in the UK. Critics argue it has driven up the value of legal fees, settlements, and insurance premiums. But as Neil Rose notes in the "one man's compensation culture is another man's access to justice".

Indeed, the Legal Services Board (LSB) opposes a ban on 'no win, no fee' TV advertising because it fears fewer people will step forward to pursue rightful claims.

Interestingly, Rose highlights the number of personal injury claims has stayed static over the last decade. Yet media reports, aggressive advertising by some claims management companies, and political hysteria have clearly created the opposite impression.

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