A predatory money making practice that seeks to profit off the suffering of victims would be outlawed under proposed new laws from the State Government.
The Government is consulting on draft legislation aimed at banning ‘claim farming’ – the practice where a business receives a kickback for referring an injured client to a law firm.
The practice is reported to occur in a number of personal injury fields, but was most recently highlighted in the wake of the Royal Commission into Institutional Responses to Child Sexual Abuse. A number of victims of child sex abuse reported being cold-called or receiving unsolicited mail from law firms or other businesses soliciting for potential clients in compensation claims.
The proposed laws, subject to further changes through consultation, would see anyone who engages in claim farming in relation to a personal injury claim being fined up to $50,000 and, in the case of a legal practitioner engaging in the practice, face potential disciplinary action.