Canadian Lawyer

March 2008

The most widely read magazine for Canadian lawyers

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"When consumers cannot compare the prices for legal services, there is little or no incentive for lawyers to compete on price, thereby raising the costs to consumers." — COMPETITION BUREAU OF CANADA and Paying by the Click," Oct. 15, 2007), quotes various experts who believe that sponsored-link advertising results from a baffling economic anomaly: that lawyers tend to charge the same amount as each other for their services. Since lawyers don't compete on price, suggest these experts, they compete in other ways, like bidding for placement on Google. Liptak also notes that Google advertising is nar- rowly focused. There is a big difference between putting an advertisement in a general circulation newspaper and put- ting one next to the results of the search term "truck accident lawyer" or "immi- gration lawyer Canada." (Liptak notes that you can place a sponsored link next to "Britney Spears nude" for a mere 21 cents a click. It is unclear what legal ser- vices are relevant to this search term.) Which brings me back to the Compe- tition Bureau of Canada. Last Decem- ber, the bureau released a study urging self-regulated professions to re-examine their rules — including those limiting advertising — to ensure those rules serve the public good and do not go too far in restricting competition. In a speech to the Economic Club of Toronto, compe- tition commissioner Sheridan Scott said: "Surely it isn't too impertinent to won- der whether all the rules are necessary, whether any of them are informed more by self-interest than by public interest, and whether changing or dropping some of these rules mightn't lead to wins both for the overall economy and for con- sumers individually." The bureau report comments that some restrictions on ad- vertising by lawyers "go beyond simply preventing false or misleading advertis- ing and, as a result, raise competition concerns in light of the numerous ben- efits advertising brings to consumers." The Competition Bureau report gives a variety of examples of current restric- tions on lawyer advertising. In Ontario, lawyers may not use words or expres- sions such as "from . . . ," "minimum," or " . . . and up" when referring to price. In Nova Scotia, an advertisement may not use words like "simple" or "compli- cated." Newfoundland and Quebec do not allow statements of gratitude in law- yers' advertisements. Most law societies do not allow a lawyer to claim to be a specialist or expert in a particular field unless he has specialized certification. (Only Ontario has a system of certifica- tion.) Most of the large provinces do not allow lawyers, in their advertisements, to compare their fees or the quality of their services to those of other lawyers. The bureau reports comments, "When consumers cannot compare the prices for legal services, there is little or no in- centive for lawyers to compete on price, thereby raising the costs to consumers." It may be a new electronic age, with links on Google replacing billboards on highways, but the underlying issues, eth- ical and economic, remain the same. Why artificially limit advertising, par- ticularly with limitations that help stifle desirable price competition? In particu- lar, why limit comparative advertising about price and quality of services? Click away on sponsored links all you like; the old-fashioned problems remain. Philip Slayton has been dean of a law school and senior partner of a major Canadian law firm. Visit him online at www.philipslayton.com No other resource covers in such detail and with such clarity the complete spectrum of Canadian mortgage law Falconbridge on Mortgages, Fifth Edition Since 1919, Falconbridge on Mortgages has held its position as the most comprehensive treatise and practical interpretation of Canadian mortgage law available. Regularly updated, and including expert commentary, detailed guidance and practical analysis, it quickly and easily guides you through even the most daunting aspects of modern Canadian mortgage law. Gain a solid understanding of: Planning Act Condominium Act, 1998 ...and much more! www.canadalawbook.ca www. C ANADIAN Law ye rmag.com M ARCH 2008 29 W alter M. T raub Regularly decisions across cited in court Canada

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