AUSTIN — The expression “ambulance chasing” may need to be updated, as Texas is cracking down on barratry through social media.
House Bill 2733 passed during the 89th Texas Legislature, giving the state a new tool against unethical solicitation in the legal services market.
The bill expands Texas Penal Code § 38.12 to include digital, electronic, and social media-based solicitation, particularly where such outreach is deceptive or financially motivated.
The legislative update comes in response to the growing use of pay-per-lead aggregator models: third-party lawsuit advertisers that harvest legal leads via texts, social media, or misleading online content, and sell them to law firms on a per-case or per-client basis.
Aggregators now face third-degree felony exposure under the new amendments.
H.B. 2733 will make the following changes:
Criminalizes electronic barratry. Any false, misleading, or deceptive online communication made to solicit legal services is now criminal;
Expands liability. The law imposes criminal liability on aggregators who solicit clients in exchange for compensation, directly or indirectly, aiming to curb profit-driven legal solicitation;
Civil penalties escalating. Barratry already carries a civil penalty of up to $10,000 per violation, with new legislation aiming to raise the amount to $50,000; and
Extends risk to law firms. Lawyers who knowingly accept cases through illegal solicitations may also face criminal liability.
The statute puts every participant in the lead-generation pipeline, from the initial social media poster to the law firm that accepts the client, under a heightened duty of compliance.
“Mass social media advertising with misleading claims, aggressive direct messaging, and call center scripts, posing as law firms have not only misled consumers, but have also undermined the integrity of the personal injury bar,” states a press release issued by Lawlor Media Group.
“With the passage of H.B. 2733, Texas lawmakers are signaling their intent to drive non-compliant case aggregators out of the market.”
The bill will become effective on Sept. 1.
