SOLICITORS' advertisements which "mislead" clients by saying they will have to pay fees only if they win their cases for damages are now prohibited.
Under Law Society regulations which took effect yesterday, solicitors' advertisements must make it clear that clients could face legal costs, particularly if they lose civil actions for compensation.
The regulations affect advertisements for "no win, no fee" or "no fee unless successful" solicitors' services which indicate that clients have to pay legal fees only if - they win their civil actions.
Such advertisements have been criticised by employers and the insurance industry as "contributing to a compensation culture".
The Solicitors (Advertising) Regulations mean that future advertisements will have to make it clear that clients who lose an action for damages may still have to pay other costs such as expenses for medical examinations needed for the claim.
The advertisements will also have to say that clients who lose a case may be liable to pay the other party's costs.
Solicitors will also be prevented from advertising for business arising out of a calamitous event such as a major rail crash.
Advertisements which do not comply with the regulations will be deemed "likely to bring the profession into disrepute, to be in bad taste and to be false and misleading".
Solicitors found in breach of the regulations, which replace 1988 regulations, may be sanctioned for professional misconduct by the Disciplinary Tribunal of the High Court.
The director general of the Law Society, Mr Ken Murphy, said the regulations are aimed at "preventing the public from being misled" by "no win no fee" advertisements.
"The client must know what the potential downside is," he said, adding that "the Law Society is keen to see that no one is misled, albeit indirectly, by such claims in advertising.
Nonetheless, Mr Murphy said the "no win no fee" practice was essential as it gives access to justice to people who could otherwise be denied it because of the absence of legal aid in civil cases.
He said a recent consultants' report to the Government by Deloitte and Touch vindicated the practice and found "no direct evidence" that it increased the number of liability claims.
That report also stated that "no win, no fee" advertisements in outlets such as the Golden Pages "may be misleading" by implying that there was no downside if the plaintiff lost. The new regulations will affect only advertisements sent for publication from yesterday.