S 821

South Carolina General Assembly
126th Session, 2025-2026
Bill 821
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Indicates Matter Stricken
Indicates New Matter
Committee Report
March 3, 2026
S. 821
Introduced
by Senators Bennett and Turner
S. Printed 3/3/26--S.
Read the first time January 15, 2026
________
The committee on Senate
Labor, Commerce and Industry
To whom was referred a Bill (S. 821) 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, etc., respectfully
Report:
That they have duly and carefully
considered the same, and recommend that the same do pass with amendment:
   Amend the bill, as and if amended, SECTION 1, by
striking Section 39-5-39(B) and inserting:
    (B) Notwithstanding
another provision of law, it is an unlawful trade practice, pursuant to Section
39-5-20, for an attorney to advertise his a person or entity, including a third-party generator or
referral service, to create, sponsor, finance, or disseminate advertising for
legal 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.
Amend the
bill further, SECTION 1, by striking Section 39-5-39(E) and (F) and inserting:
    (E) Any advertising for legal services,
in whatever form or medium, must disclose clearly and conspicuously, in close
proximity and in a similar size, the identity of the attorney or law firm that
will be primarily responsible for the client's representation or a clear
explanation of how the matter will be referred to an attorney or law firm.
    (E)(F) A violation of subsections (C), or (D), or (E) constitutes an unfair
trade practice enforceable exclusively by the Department of Consumer Affairs
who shall seek both monetary and injunctive relief.
    (F)(G) A violation of this section does not create any private cause
of action for a violation of this section.
Amend the
bill further, by adding an appropriately numbered SECTION to read:
SECTION X. If any section, subsection,
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for
any reason held to be unconstitutional or invalid, such holding shall not
affect the constitutionality or validity of the remaining portions of this act,
the General Assembly hereby declaring that it would have passed this act, and
each and every section, subsection, paragraph, subparagraph, sentence, clause,
phrase, and word thereof, irrespective of the fact that any one or more other
sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases,
or words hereof may be declared to be unconstitutional, invalid, or otherwise
ineffective.
Renumber sections to conform.
Amend title to conform.
THOMAS DAVIS for
Committee.
_______
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'S 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.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION
1.  Section 39-5-39 of the S.C. Code is amended to
read:
    Section
39-5-39. (A) Advertising shall 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
must also 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.
SECTION 2.  This act takes effect upon approval
by the Governor.
----XX----
This web page was last updated on March 03, 2026 at 01:42 PM