Concerns about the evolution of the compensation culture have not been confined to any one country.  Critics of personal injury firms can accuse them of making excessive profits and of being too energetic in their pursuit of business.  They may complain about the impact on consumers in terms of rising insurance bills as more people consider making a whiplash claim, for example.

According to the Sydney Morning Herald, legislative efforts to restrict advertising by personal injury firms have proven ineffective.  The policy was implemented in New South Wales in order to combat what was perceived as “ambulance chasing.”  However, in practice the advertising limits have been evaded as firms have used intermediaries to get their message across.  The failure of the policy also raises the wider question of whether it is correct to limit a legal industry from advertising if consumers are keen to use it and where the alleged harm to society is highly contestable.

There appear to be various political and practical concerns when it comes to interfering with the advertising of the personal injury sector.  Regulation of advertising to ensure decent standards are adhered to is one thing, prohibition is another.  However, in a democracy these questions can ultimately only be addressed through public discussion and via consultation with the interested parties.

Critics of the compensation culture will not go away.  However, the experience in New South Wales indicates that attempts to respond to their perspective may not have the outcome they desire.  This could be because so many consumers are eager to make an accident claim in the event of suffering an injury.