FOR YOUR INFORMATION................June 9, 1987 The Federal Trade Commission staff has said that proposals to modify rules regulating Florida attorneys would, to a limited extent, benefit consumers, but that some of the proposals would hurt consumers and should be modified. The Florida Supreme Court is considering a petition from the state bar association to modify the rules. In a statement submitted to the court, the FTC staff said that the proposed rules "would relax the restrictions on fees and should permit more price competition than do the existing rules." The staff added, "We are concerned, however, that some of the other proposed rules may harm consumers by discouraging referrals and associations between attorneys, and by unnecessarily limiting the information available to consumers." The staff said that, so as not to reduce the quality of legal services offered to the public, it supported a proposal that would relax restrictions on the "reasonableness" of fees and also recommended that the Court remove the ceilings on contingent fees. In order to help consumers select the attorney best qualified to handle their cases, the staff recommended that the court allow referrals and associations of attorneys in different law firms for particular cases, and allow the payment of referral fees and participation in for-profit lawyer referral services. The staff also said that consumers might be provided with a range of professional services if the court eliminated a restriction against practice with nonlawyers. So that consumers could more easily obtain information about lawyers' services, the FTC staff recommended that the court: -- allow the use of truthful, nondeceptive endorsements and experience, success, and comparison claims; -- eliminate a requirement that advertisements "comport with the dignity of the profession"; -- remove the broad ban on solicitation; and -- allow express and implied claims of specialty and certification. The statement represents the views of the FTC's Bureaus of Competition, Consumer Protection, and Economics, and does not necessarily reflect the views of the Commission or any individual Commissioner. Copies of the statement are available from the FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Susan Ticknor, Office of Public Affairs, 202-326-2179 STAFF CONTACT: Charles W. Corddry III, Bureau of Competition, 202-326-2920 (FlaAtty)