The consultation period has now closed on the Claims management regulation proposal to amend rule 6(B) of the conduct rules paper, issued by the Ministry of Justice. Following recommendations in Lord Young’s Common Sense, Common Safety report, the consultation paper proposes a change to Rule 6(b) so that inducements of any kind are banned in personal injury advertising. You can read more about this in the Personal Injury Advertising blog.
Lord Young’s report was commissioned by the government to review UK health and safety, as well as the growth of a 'compensation culture'. However, a recent survey conducted by Norton Rose found that this ‘compensation culture’ “does not have the impact that many believe” and is based on perceptions by the public and media.
In response to question one of the consultation paper – do you have any comments on the proposal to prohibit the offering of financial or similar benefits as an inducement for making a claim by amending Client Specific Rule 6(b) of the Conduct of Authorised Persons Rules 2007? – the Consumer Justice Alliance (CJA):
- “Fully supports the prohibition of inducements subject to a corresponding ban on third party capture.”
- Agrees that “any advertising that represents a personal injury compensation award as some kind of lucky prize draw is inappropriate and misleading.”
- “Believe that prohibiting the offering of financial benefits as an inducement for making a claim constitutes the sort of sensible, measured reform that will reduce costs in the current system without dismantling it altogether.
As a member of the CJA, ARAG fully endorses this response. The full response is available to read on CJA website: http://www.consumerjusticealliance.co.uk/index.html.