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Lawyers and Accountants 2019 -
an organization whose objective is promoting professional activities, WSG should not violate the ban on
payments for referrals and would not be involved in fee splitting.
[4]—Advertising Marketing Directories — Organization and Lawyers
John joined PSI not only because of the resources that PSI makes available, but he knows that PSI/Microsoft,
in order to retain members, must spend considerable amounts on advertising to “guarantee referrals.” Judy’s
firm pays indirectly a portion of the advertising for WSG whose budget is $5 million. What rules, if any, apply
to PSI, WSG and their members related to advertising?
Each profession has their rules of permitted advertising.172 To be viable, PSI, the service provider, must attract
a large number of consumers of services. This requires a concerted marketing effort. While in the United
States attorneys now have fairly liberal advertising privileges, lawyers in many other jurisdictions are
prohibited from marketing.”173 The professionals could be responsible for the advertising of the service
provider.
The first issue is whether John and Judy are advertising or whether the activities of PSI and WSG are
independent of the members. In the United States advertising is permitted if it not false and misleading.174
Thus, the issue is whether the advertising violates the rules of the lawyers in the association. In the United
States, lawyers are subject to ABA Model Rule 7.2.
Rule 7.2 Advertising
(a) A lawyer may advertise services through public media, such as a telephone directory, legal directory, and
newspaper or other periodical, outdoor advertising, radio or television or through written recorded
communications.
(b) A copy or recording of an advertisement or communication shall be kept for two years after its last
dissemination along with a record of when and where it was used.
(c) A lawyer shall not give anything of value to a person for recommending the lawyer’s services except a
lawyer may
(1) pay the reasonable cost for advertisement or communications permitted by this Rule;
(2) pay the usual charges of a not-for-profit lawyer referral service or legal service organizations; and
(3) pay for a law practice in accordance with Rules 1.17.
(d) Any communication made pursuant to this Rule shall include the name of at least one lawyer responsible
for its content.
While lawyers have had very specific rules on directories, WSG is not a directory but an association. Its
directory is incidental. However, if the materials from the WSG contained language to the effect that the
172 Multidisciplinary Practice of law - hazards of dual practice with respect to advertising, solicitation and reasonableness of fees. 13 CBA Record 47(2)
(Nov. 1999).
173 Altof, Lawyer Advertising on the Internet (Practical and Ethical Considerations of Internet Advertising) 453 Wash St. Bar News, 32 (11 Dec 1999)
174 Bates v. State Bar of Arizona, 433 U.S. 350, 97 S.G. 2691, 53 L.Ed. 2d 810 (1977).
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an organization whose objective is promoting professional activities, WSG should not violate the ban on
payments for referrals and would not be involved in fee splitting.
[4]—Advertising Marketing Directories — Organization and Lawyers
John joined PSI not only because of the resources that PSI makes available, but he knows that PSI/Microsoft,
in order to retain members, must spend considerable amounts on advertising to “guarantee referrals.” Judy’s
firm pays indirectly a portion of the advertising for WSG whose budget is $5 million. What rules, if any, apply
to PSI, WSG and their members related to advertising?
Each profession has their rules of permitted advertising.172 To be viable, PSI, the service provider, must attract
a large number of consumers of services. This requires a concerted marketing effort. While in the United
States attorneys now have fairly liberal advertising privileges, lawyers in many other jurisdictions are
prohibited from marketing.”173 The professionals could be responsible for the advertising of the service
provider.
The first issue is whether John and Judy are advertising or whether the activities of PSI and WSG are
independent of the members. In the United States advertising is permitted if it not false and misleading.174
Thus, the issue is whether the advertising violates the rules of the lawyers in the association. In the United
States, lawyers are subject to ABA Model Rule 7.2.
Rule 7.2 Advertising
(a) A lawyer may advertise services through public media, such as a telephone directory, legal directory, and
newspaper or other periodical, outdoor advertising, radio or television or through written recorded
communications.
(b) A copy or recording of an advertisement or communication shall be kept for two years after its last
dissemination along with a record of when and where it was used.
(c) A lawyer shall not give anything of value to a person for recommending the lawyer’s services except a
lawyer may
(1) pay the reasonable cost for advertisement or communications permitted by this Rule;
(2) pay the usual charges of a not-for-profit lawyer referral service or legal service organizations; and
(3) pay for a law practice in accordance with Rules 1.17.
(d) Any communication made pursuant to this Rule shall include the name of at least one lawyer responsible
for its content.
While lawyers have had very specific rules on directories, WSG is not a directory but an association. Its
directory is incidental. However, if the materials from the WSG contained language to the effect that the
172 Multidisciplinary Practice of law - hazards of dual practice with respect to advertising, solicitation and reasonableness of fees. 13 CBA Record 47(2)
(Nov. 1999).
173 Altof, Lawyer Advertising on the Internet (Practical and Ethical Considerations of Internet Advertising) 453 Wash St. Bar News, 32 (11 Dec 1999)
174 Bates v. State Bar of Arizona, 433 U.S. 350, 97 S.G. 2691, 53 L.Ed. 2d 810 (1977).
62
