Lawyer Advertising Unfair Practice

2025-2026 Bill 5004: Lawyer Advertising Unfair Practice - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 5004
STATUS INFORMATION
General Bill
Sponsors: Rep. Bailey
Companion/Similar bill(s): 821
Document Path: LC-0497SA26.docx
Introduced in the House on January 22, 2026
Currently residing in the House Committee on
Judiciary
Summary: Lawyer Advertising Unfair Practice
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

1/22/2026

House

Introduced and read first time (
House Journal-page 26
)

1/22/2026

House

Referred to Committee on
Judiciary
(
House Journal-page 26
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
01/22/2026

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION
39-5-39
, RELATING TO AN ATTORNEY ADVERTISING IN A FALSE, DECEPTIVE, OR
MISLEADING MANNER, SO AS TO DEFINE FALSE ADVERTISING; TO PROVIDE THAT ANY
ADVERTISING FOR LEGAL SERVICES THAT REFERENCES A SETTLEMENT OBTAINED ON BEHALF
OF A CLIENT MUST DISCLOSE THE AMOUNT OF ATTORNEY FEES AND LITIGATION COSTS
DEDUCTED FROM THE RECOVERY; TO REQUIRE THE LEGAL ADVERTISEMENT TO CLARIFY THAT
ANY REFERENCED RESULTS ARE NOT REPRESENTATIVE OF ALL CASES AND THAT OUTCOMES
DEPEND ON THE SPECIFIC FACTS OF EACH CASE; AND TO PROVIDE THAT ANY ADVERTISING
FOR LEGAL SERVICES THAT STATES THAT THE FILING OF A LAWSUIT IS AGAINST AN
INSURANCE COMPANY OR OTHER THIRD PARTY MUST DISCLOSE THE FACT THAT ANY LAWSUIT
WOULD BE FILED AGAINST AN INDIVIDUAL OR BUSINESS THAT WOULD BE NAMED AS THE
DEFENDANT AND THAT THE INSURANCE COMPANY IS ONLY PROVIDING THE COVERAGE ON
BEHALF OF THE NAMED INDIVIDUAL OR BUSINESS BASED ON A POLICY PURCHASED BY THE
INDIVIDUAL OR BUSINESS.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
39-5-39
of the S.C. Code is amended to read:

S
ection
39-5-39
.
(
A) Advertising must be deemed false, deceptive, or misleading if
it:

(
1) contains any statement, implication,
or inference that guarantees, assures, or promises a particular outcome,
recovery, verdict, settlement amount, or success rate;

(
2) suggests that past results, case
outcomes, or client recoveries are indicative of future results, unless
accompanied by a clear and prominent statement that prior results do not
guarantee a similar outcome; or

(
3) uses superlative, comparative, or
predictive language that cannot be substantiated and that would reasonably lead
a prospective client to expect results that are not typical or reasonably
achievable.

(
B)
Notwithstanding another
provision of law, it is an unlawful trade practice, pursuant to Section
39-5-20
, for an attorney to advertise his services in this State in a false,
deceptive, or misleading manner including, but not limited to, the use of a
nickname that creates an unreasonable expectation of results.

(
C)
(
1)
Any advertising for legal services, in whatever form or medium, that
references, depicts, or states a specific dollar amount of a settlement,
verdict, judgment, or recovery obtained on behalf of a client must clearly and
conspicuously disclose, in close proximity and in a similar size to the
referenced dollar amount, the amount or percentage of attorney fees deducted
from the recovery and the amount of litigation costs or expenses deducted from
the recovery.

(
2) Such advertising for legal services
also must disclose, in a clear and prominent manner, that the referenced result
is not representative of all cases and that outcomes depend on the specific
facts and legal circumstances of each matter.

(
D) Any advertising for legal services,
in whatever form or medium, that references, depicts, or states that the filing
of a lawsuit or legal claim or suggesting that the lawsuit or claim is against
an insurance company or other third party must disclose clearly and
conspicuously, in close proximity and in a similar size, the following
disclosure or substantially similar language: "Any lawsuit would be filed
against an individual or business that would be named as the defendant and that
the insurance company is only providing the coverage on behalf of the named
individual or business based on a policy purchased by the individual or
business."

(
E) A violation of subsections (C) or
(D) constitutes an unfair trade practice enforceable exclusively by the
Department of Consumer Affairs who shall seek both monetary and injunctive
relief.

(
F) A violation of this section does not
create any private cause of action for a violation of this section.

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on January 22, 2026 at 10:45 AM