5Prohibited contact in relation to potential claims

5 Prohibited contact in relation to potential claims

5 Prohibited contact in relation to potential claims

(1) A person commits an offence if the person—

(a) contacts another person (a potential claimant) to solicit the potential claimant to make a claim, and

(b) the person making the contact—

(i) receives consideration because of the contact, or

(ii) agrees or expects to receive consideration because of the contact, or

(iii) asks for someone else to receive consideration because of the contact, or

(iv) agrees to someone else receiving consideration because of the contact.

Maximum penalty—500 penalty units.

(2) A person commits an offence if the person—

(a) contacts a potential claimant to refer the potential claimant to another person to provide a service in relation to a claim, and

(b) the person making the contact—

(i) receives consideration because of the contact, or

(ii) agrees or expects to receive consideration because of the contact, or

(iii) asks for someone else to receive consideration because of the contact, or

(iv) agrees to someone else receiving consideration because of the contact.

Maximum penalty—500 penalty units.

(3) A person must not arrange for a third party to contact a potential claimant in contravention of subsection (1) or (2).

Maximum penalty—500 penalty units.

(4) This section does not apply—

(a) if a potential claimant is contacted by a notice given under the Civil Procedure Act 2005, section 175, or a corresponding law, in relation to representative proceedings, however described, or

(b) if a law practice—

(i) contacts a potential claimant that the practice has provided legal services to, and

(ii) reasonably believes the potential claimant will not object to the contact, or