PACT: Lawsuit abuse drives up costs of living as calls for legal reform grow

Sally Greenberg, Executive Director of the National Consumers League
Sally Greenberg, Executive Director of the National Consumers League - Instagram.com
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Protecting American Consumers Together (PACT) announced that there is widespread voter support for legal reforms aimed at addressing lawsuit abuse and its impact on the cost of living. PACT made this announcement in a press release on March 4.

According to a survey conducted by PACT, a majority of voters believe that lawsuit abuse significantly contributes to rising consumer prices. The survey found that 70% of respondents agreed excessive litigation is driving up costs, with this view supported across political affiliations. “In particular, American voters want Congress to act to eliminate the $4,200 hidden tax all American families pay as a result of frivolous lawsuits,” wrote GS Strategy Group in its polling memo to PACT.

The American Tort Reform Association (ATRA) reports that Nevada residents face a financial burden due to excessive tort costs, commonly referred to as the “tort tax.” In 2023, Nevada’s tort costs amounted to more than $1,100 per resident, contributing to a loss of over 31,000 jobs annually across the state. The combination of high legal advertising spending, totaling $137.2 million on 1.6 million ads, and political contributions from trial law firms has raised concerns about the influence of litigation on consumer costs and the economy.

According to its website, PACT is a 501(c)(4) nonprofit organization focused on reducing the financial burden of excessive litigation on consumers. By advocating for legal system transparency and reforms, the organization seeks to curb predatory legal practices that drive up costs. Through media campaigns and legislative efforts, PACT promotes policies that enhance fairness and accountability in the legal system.



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