Blockchain Registration Transaction Record

California Enacts Sweeping Legal Reforms to Protect Consumers

California Governor Newsom signs AB 931, banning attorney fee-sharing with non-lawyers and requiring 5-day cancellation windows. Pending SB 37 would restrict legal advertising.

These legal reforms directly impact anyone seeking legal representation in California by ensuring greater transparency and protection from predatory practices. Consumers will benefit from clearer contracts, elimination of hidden fees, and the ability to cancel agreements within five days without penalty. For attorneys and law firms, these changes necessitate complete restructuring of business models, fee arrangements, and marketing strategies. The legislation addresses long-standing concerns about ethical practices in legal funding and advertising, potentially setting a national precedent for legal industry regulation. Small business owners and individuals seeking legal assistance can now engage with attorneys with greater confidence in the fairness of their agreements.