Institute for Legal Reform: ‘Fearmongering lawsuit ads can mislead viewers’

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A discussion hosted by the Institute for Legal Reform | X/LegalReform

The U.S. Chamber of Commerce Institute for Legal Reform (ILR) stated in an August 16 post that advertisements for medication lawsuits can mislead consumers, causing them to stop taking prescribed medications and potentially leading to negative health effects.

"One of the most concerning aspects of manipulative legal advertising is their potential to create public health risks," said the ILR. "Fearmongering lawsuit ads can mislead viewers to believe that FDA-approved medications will harm them, leading some people to discontinue their prescriptions or not seek treatment at all. For example, ads targeting prescription drugs often fail to inform viewers that the drug remains approved by the FDA unless it has been recalled or withdrawn. This omission can cause individuals to stop taking necessary medications, resulting in adverse health outcomes."

According to the ILR, there has been an increase in advertisements from trial lawyers promising large settlements, which attorneys use to attract more clients to their cases. Due to a lack of regulations, these advertisements can present ethical concerns and health risks. Several states, including Florida and Louisiana, have taken steps to regulate legal advertising in order to protect consumers.

In 2019, the Federal Trade Commission (FTC) sent letters to seven legal practitioners expressing that some television advertisements attempting to solicit clients for class action lawsuits included deceptive or misleading information about pharmaceuticals. According to a press release, the FTC said some of these lawsuit ads may misrepresent risks linked to medications and leave viewers with the false impression that their medication has been recalled. In some cases, lawsuit advertisements begin with "sensational warnings or alerts" that may deceive viewers into believing the ad is a government-sanctioned medical alert.

Attorney ad campaigns fuel a large volume of tort litigation, which raises costs for Nevada businesses and residents, according to a press release from the American Tort Reform Association (ATRA). Every Nevadan pays an extra "tax" of more than $1,100 every year due to the costs associated with excessive tort litigation. Nevada also loses more than 31,000 jobs annually due to those costs.

Attorneys in Nevada spent more than $137.2 million on legal services advertisements in Nevada in 2023, according to a report from ATRA. This spending resulted in more than 1.68 million ads.

The ILR’s mission is to "champion a fair legal system that promotes economic growth and opportunity," according to its website. Stephen Waguespack currently serves as president of the ILR.