{"id":"nsw:act-2025-019","name":"Claim Farming Practices Prohibition Act 2025","slug":"claim-farming-practices-prohibition-act-2025","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"19 of 2025","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":28792,"registerId":"nsw-act-2025-019-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Claim Farming Practices Prohibition Act 2025](/view/html/inforce/current/act-2025-019).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on the date of assent to this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Act—\n> > \n> > associate, of a law practice, has the same meaning as in the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a).\n> > \n> > claim includes a potential claim.\n> > \n> > consideration means a fee or other benefit.\n> > \n> > law practice has the same meaning as in the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a).\n> > \n> > legal services has the same meaning as in the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a).\n> > \n> > potential claimant—see section 5(1).\n> > \n> > Note—\n> > \n> > The [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) contains definitions and other provisions that affect the interpretation and application of this Act.\n> \n> > (2) In this Act, a reference to a law practice, other than a reference to a purchasing law practice, includes a reference to an associate of a law practice.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Certain contact and referral payments prohibited","content":"# Part 2 Certain contact and referral payments prohibited\n\nPart 2 Certain contact and referral payments prohibited","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Application of part","content":"#### 4 Application of part\n\n4 Application of part\n\n> This part—\n> \n> > (a) applies to claims for personal injury damages, within the meaning of the [Civil Liability Act 2002](/view/html/inforce/current/act-2002-022), section 11, other than claims related to a kind of civil liability referred to in that Act, section 3B(1)(b)–(h), and\n> \n> > (b) is intended to have extraterritorial application as far as the legislative powers of the State permit.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Prohibited contact in relation to potential claims","content":"#### 5 Prohibited contact in relation to potential claims\n\n5 Prohibited contact in relation to potential claims\n\n> > (1) A person commits an offence if the person—\n> > \n> > > (a) contacts another person (a potential claimant) to solicit the potential claimant to make a claim, and\n> > \n> > > (b) the person making the contact—\n> > > \n> > > > (i) receives consideration because of the contact, or\n> > > \n> > > > (ii) agrees or expects to receive consideration because of the contact, or\n> > > \n> > > > (iii) asks for someone else to receive consideration because of the contact, or\n> > > \n> > > > (iv) agrees to someone else receiving consideration because of the contact.\n> > \n> > Maximum penalty—500 penalty units.\n> \n> > (2) A person commits an offence if the person—\n> > \n> > > (a) contacts a potential claimant to refer the potential claimant to another person to provide a service in relation to a claim, and\n> > \n> > > (b) the person making the contact—\n> > > \n> > > > (i) receives consideration because of the contact, or\n> > > \n> > > > (ii) agrees or expects to receive consideration because of the contact, or\n> > > \n> > > > (iii) asks for someone else to receive consideration because of the contact, or\n> > > \n> > > > (iv) agrees to someone else receiving consideration because of the contact.\n> > \n> > Maximum penalty—500 penalty units.\n> \n> > (3) A person must not arrange for a third party to contact a potential claimant in contravention of subsection (1) or (2).\n> > \n> > Maximum penalty—500 penalty units.\n> \n> > (4) This section does not apply—\n> > \n> > > (a) if a potential claimant is contacted by a notice given under the [Civil Procedure Act 2005](/view/html/inforce/current/act-2005-028), section 175, or a corresponding law, in relation to representative proceedings, however described, or\n> > \n> > > (b) if a law practice—\n> > > \n> > > > (i) contacts a potential claimant that the practice has provided legal services to, and\n> > > \n> > > > (ii) reasonably believes the potential claimant will not object to the contact, or\n> > \n> > > (c) if a law practice contacts a potential claimant after receiving—\n> > > \n> > > > (i) a request to do so by a representative of a community legal service or industrial organisation, and\n> > > \n> > > > (ii) confirmation the representative reasonably believes the potential claimant will not object to the contact.\n> \n> > (5) Subsection (4) places an evidential burden on the accused.\n> \n> > (6) This section applies regardless of whether the potential claimant—\n> > \n> > > (a) is entitled to make a claim, or\n> > \n> > > (b) has decided to make, or has made, a claim.\n> \n> > (7) In this section—\n> > \n> > community legal service has the same meaning as in the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a).\n> > \n> > contact a potential claimant includes personally approaching or contacting the claimant—\n> > \n> > > (a) in person or by mail, telephone, email or another form of electronic communication, and\n> > \n> > > (b) individually or as a member of a class of persons.\n> > \n> > corresponding law means the following—\n> > \n> > > (a) the [Federal Court of Australia Act 1976](http://www.legislation.gov.au/) of the Commonwealth, Part IVA,\n> > \n> > > (b) a law of another State or Territory that relates to representative proceedings, however described,\n> > \n> > > (c) another law prescribed by the regulations.\n> > \n> > industrial organisation has the same meaning as in the [Industrial Relations Act 1996](/view/html/inforce/current/act-1996-017).\n> > \n> > solicit includes induce.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Claim referrals for consideration prohibited","content":"#### 6 Claim referrals for consideration prohibited\n\n6 Claim referrals for consideration prohibited\n\n> > (1) A person must not—\n> > \n> > > (a) receive consideration for referring a claim to another person, or\n> > \n> > > (b) agree to receive consideration for referring a claim to another person, or\n> > \n> > > (c) arrange for a third party to receive consideration for the person referring a claim to another person.\n> > \n> > Maximum penalty—500 penalty units.\n> \n> > (2) A person (the payer) must not—\n> > \n> > > (a) provide consideration to another person for the referral of a claim, or\n> > \n> > > (b) agree to provide consideration to another person for the referral of a claim, or\n> > \n> > > (c) arrange for a third party to provide consideration to another person for the referral of a claim.\n> > \n> > Maximum penalty—500 penalty units.\n> \n> > (3) Subsection (2) applies whether a claim is referred for the purpose of—\n> > \n> > > (a) the payer providing a service in relation to the claim, or\n> > \n> > > (b) someone else providing a service for the claimant.\n> \n> > (4) This section does not apply—\n> > \n> > > (a) if, in acting for a claimant, a law practice refers a matter relating to a claim to another person to provide a service in relation to the claim, or\n> > \n> > > (b) if all or part of a law practice is being sold to a purchasing law practice and—\n> > > \n> > > > (i) the referral, including details of the consideration, is disclosed to the claimant, and\n> > > \n> > > > (ii) the consideration provided by the purchasing law practice is not more than the unbilled legal costs of the claimant at the time of the sale of all or part of the practice, and\n> > > \n> > > > (iii) the claimant is advised the referral may be refused, and\n> > > \n> > > > (iv) the claimant approves the referral.\n> \n> > (5) Subsection (4) places an evidential burden on the accused.\n> \n> > (6) In this section—\n> > \n> > claimant includes a potential claimant.\n> > \n> > legal costs has the same meaning as in the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a).\n> > \n> > referral, in relation to a claim, includes—\n> > \n> > > (a) a referral arising from services provided to a claimant, and\n> > \n> > > (b) the disclosure of a claimant’s personal details.\n> > \n> > sale, of a law practice, includes the referral of the files of a retiring associate of the law practice.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Exceptions for advertisements of legal services","content":"#### 7 Exceptions for advertisements of legal services\n\n7 Exceptions for advertisements of legal services\n\n> A person does not commit an offence under this part by—\n> \n> > (a) advertising, marketing or promoting a law practice to the public, or\n> \n> > (b) providing or receiving consideration relating to advertising, marketing or promoting a law practice to the public.","sortOrder":8},{"sectionNumber":"Part 3","sectionType":"part","heading":"Miscellaneous","content":"# Part 3 Miscellaneous\n\nPart 3 Miscellaneous","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Time within which proceedings for offences may be commenced","content":"#### 8 Time within which proceedings for offences may be commenced\n\n8 Time within which proceedings for offences may be commenced\n\n> > (1) Proceedings for an offence under this Act may be commenced—\n> > \n> > > (a) within but not later than 2 years after the date on which the offence is alleged to have been committed, or\n> > \n> > > (b) within but not later than 2 years after the date on which evidence of the alleged offence first came to the attention of a police officer.\n> \n> > (2) If subsection (1)(b) is relied on, the court attendance notice—\n> > \n> > > (a) must contain particulars of the date on which evidence of the offence first came to the attention of the police officer, and\n> > \n> > > (b) is not required to contain particulars of the date on which the offence was committed.\n> \n> > (3) The date on which evidence first came to the attention of a police officer is the date specified in the court attendance notice unless another date is established.\n> \n> > (4) This section applies despite any provision of the [Criminal Procedure Act 1986](/view/html/inforce/current/act-1986-209) or another Act.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Nature of proceedings for offences","content":"#### 9 Nature of proceedings for offences\n\n9 Nature of proceedings for offences\n\n> Proceedings for an offence under this Act may be dealt with summarily before the Local Court.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Review of Act","content":"#### 10 Review of Act\n\n10 Review of Act\n\n> > (1) The Minister must review the operation of this Act to determine whether—\n> > \n> > > (a) the policy objectives of the Act remain valid, and\n> > \n> > > (b) the terms of the Act remain appropriate for securing the policy objectives.\n> \n> > (2) The review must be undertaken as soon as practicable after the period of 2 years from the commencement of this Act.\n> \n> > (3) A report on the outcome of the review must be tabled in each House of Parliament as soon as practicable after the review is undertaken.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Regulations","content":"#### 11 Regulations\n\n11 Regulations\n\n> The Governor may make regulations about a matter that is—\n> \n> > (a) required or permitted by this Act to be prescribed, or\n> \n> > (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":13},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 1 Savings, transitional and other provisions\n\nSchedule 1 Savings, transitional and other provisions","sortOrder":14},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":null,"content":"# Schedule 2\n\nSchedule 2 (Repealed)\n\n**sch 2:** Rep 1987 No 15, sec 30C.","sortOrder":19}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of prohibiting claim farming practices in personal injury matters. The scope has not expanded beyond personal injury claims (specifically excluding certain civil liability types under Civil Liability Act section 3B), and the exceptions are narrowly tailored to preserve legitimate legal practice activities such as advertising, existing client relationships, and law practice sales."},"complexity_factors":["Multiple cross-references to external legislation (Legal Profession Uniform Law, Civil Liability Act, Civil Procedure Act, Industrial Relations Act, Criminal Procedure Act)","Nested exceptions in sections 5(4) and 6(4) with multiple sub-conditions (e.g., law practice sale exception requires 4 separate criteria)","Evidential burden provisions (sections 5(5) and 6(5)) creating procedural complexity","Extraterritorial application clause (section 4(b)) introducing jurisdictional uncertainty","Defined terms scattered across sections rather than consolidated (e.g., 'contact', 'referral', 'consideration' defined in operative sections)","Complex temporal limitation provisions in section 8 with alternative calculation methods","Transitional provisions with conditional logic (Schedule 1, section 2) distinguishing between agreements entered into before commencement versus acts done after"],"plain_english_summary":"**What this law does:**\n\nThis Act bans \"claim farming\" — the practice where people or companies cold-call or approach accident victims to pressure them into making personal injury claims, usually so they can pocket a referral fee from lawyers.\n\n**Who it affects:**\n\n- **Potential claimants** — people who might have a personal injury claim (the law protects them from unwanted approaches)\n- **Law practices and lawyers** — they cannot pay for referrals or receive payment for referring clients to other lawyers\n- **Third-party marketers and middlemen** — people who solicit claims for money are now committing serious offences\n\n**What is now illegal:**\n\n- **Cold-calling for cash** — contacting someone to encourage them to make a claim, if you (or someone else) gets paid for that contact (500 penalty units maximum fine)\n- **Paid referrals** — giving or receiving money for referring a claim to another person or lawyer (500 penalty units)\n- **Arranging others to do it** — getting a third party to make prohibited contact or receive referral fees\n\n**Important exceptions:**\n\n- **General advertising** — lawyers can still advertise their services to the public\n- **Existing clients** — lawyers can contact former clients if they reasonably believe the client won't mind\n- **Community referrals** — community legal centres and unions can request lawyers contact their members\n- **Law practice sales** — when a firm is sold, client files can be transferred with full disclosure and client consent\n- **Court notices** — formal court notifications about class actions are allowed\n\n**Why it matters:**\n\nClaim farming has plagued the personal injury system, leading to inflated insurance costs, nuisance claims, and vulnerable people being harassed after accidents. This law cuts off the financial incentive — the referral fees — that fuel the industry. It targets the middlemen who profit from harvesting claims, not genuine legal marketing or client relationships."},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act appears broader than a narrow motor accident focus alone. While a companion Bill specifically amends the Motor Accident Injuries Act (suggesting the original policy impetus was CTP/motor accident claims), this standalone Act creates a general prohibition on claim farming practices that likely extends beyond motor accidents to other personal injury contexts. This represents a wider scope than a simple amendment to existing motor accident legislation would have achieved."},"complexity_factors":["The document provided is primarily metadata and status information from the NSW legislation website — the actual operative provisions of the Act are not included, limiting full analysis","The Act interacts with related legislation (Motor Accident Injuries Act amendments), requiring cross-referencing to understand full scope","Defining 'claim farming' with sufficient legal precision to avoid capturing legitimate legal referral arrangements requires careful drafting","Determining liability across a chain of actors (the claim farmer, the referral recipient, the law firm) adds layered complexity","The concept of 'unsolicited contact' and thresholds for prohibited conduct may require regulatory guidance to interpret"],"plain_english_summary":"The Claim Farming Practices Prohibition Act 2025 (NSW) makes the predatory practice of “claim farming” illegal across New South Wales, protecting accident victims from being cold‑called, pressured, or sold to for personal injury or CTP claims. It affects claim farmers, referrers and professionals who accept such referrals, is administered by the NSW Attorney‑General, works alongside amendments to the Motor Accident Injuries Act, and came into full force on 10 April 2025."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act itself defines its territorial and subject‑matter scope (personal injury claims as defined, extraterritorial application 'as far as powers permit') and fixes commencement at assent (s4, s2 Commencement). Schedule 1 limits retrospective effect and preserves certain pre‑existing agreements (Schedule 1, Part 2, s2). Nothing in the text indicates an alteration to the Act's stated scope after enactment."},"complexity_factors":["Cross‑references to other statutes for key terms (Legal Profession Uniform Law; Civil Liability Act; Civil Procedure Act) increase interpretive complexity (see s3, s4).","Broad, catch‑all definitions (e.g. 'claim includes a potential claim'; wide definition of 'contact') widen scope and require factual determinations.","Multiple, conditional exceptions with evidential burdens on the accused (s5(4)–(5); s6(4)–(5)) create litigation complexity and proof issues.","Extraterritorial intent limited by constitutional/legislative power raises uncertainty about enforceability outside the State (s4(b)).","Detailed transitional and savings rules constrain retrospective application but add procedural complexity (Schedule 1, Part 2, s2).","Dual offence structure (prohibited contact, prohibited referral/payment, arranging third‑party conduct) with uniform penalty levels requires separate factual findings (ss5–6).","Time limits and alternative accrual rules for commencing proceedings create evidential and procedural nuance (s8).","Regulations power to prescribe further matters may expand or clarify scope after assent (s11).","Proceedings permitted to be dealt with summarily (s9) narrows forum but may affect remedies and enforcement discretion."],"plain_english_summary":"This Act makes it a crime to solicit or refer people to bring personal‑injury claims in return for a fee or other benefit, or to arrange for third parties to do so. It targets law practices, intermediaries and anyone who pays or receives referral consideration, while exempting public advertising and a few limited law‑practice situations. It matters because it shifts legal and compliance risk, and financial cost, onto those who pay for or accept claim referrals."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/claim-farming-practices-prohibition-act-2025","history":"/api/acts/claim-farming-practices-prohibition-act-2025/history","analysis":"/api/acts/claim-farming-practices-prohibition-act-2025/analysis","conflicts":"/api/acts/claim-farming-practices-prohibition-act-2025/conflicts","importantCases":"/api/acts/claim-farming-practices-prohibition-act-2025/important-cases","documents":"/api/acts/claim-farming-practices-prohibition-act-2025/documents"}}