Curated News
By: NewsRamp Editorial Staff
November 07, 2025
California Enacts Sweeping Legal Funding & Advertising Reforms
TLDR
- Seber Bulger Law gains advantage as new California laws increase transparency in legal funding and advertising, creating trust that attracts more clients.
- AB 931 requires plain language contracts with explicit fees, while SB 37 restricts promotional content, establishing clear legal funding and advertising procedures.
- These laws protect consumers from unethical practices, ensuring honest attorney-client relationships and making legal services more accessible and trustworthy for all.
- California's new legal funding laws ban referral fees and misleading awards in ads, reshaping how lawyers interact with litigation financing companies.
Impact - Why it Matters
These new California laws directly impact consumers by creating crucial protections against predatory legal funding practices and misleading attorney advertising. For individuals considering litigation, the reforms ensure transparent fee structures and prevent attorneys from having financial conflicts with third-party funders. The advertising restrictions protect vulnerable consumers from manipulative marketing tactics when they're most in need of honest legal counsel. This matters because it levels the playing field for ordinary people navigating the legal system, ensuring they receive fair treatment and clear information during stressful legal situations. The legislation represents a significant step toward restoring public trust in legal services and preventing exploitation of those seeking justice.
Summary
California lawmakers have enacted significant new regulations governing legal funding and attorney advertising practices through two landmark bills signed by Governor Gavin Newsom. Assembly Bill 931, signed on October 13, 2025, establishes comprehensive consumer protections for litigation funding arrangements, requiring all contracts to be written in plain language that consumers can understand without professional guidance. The legislation mandates full disclosure of all fees and maximum potential awards while prohibiting attorneys from receiving referral fees from legal funders. This sweeping reform aims to protect consumers, preserve attorney-client privilege, and ensure ethical interactions between funding companies and those seeking legal financial support.
Simultaneously, Senate Bill 37 imposes strict new limitations on attorney advertising practices for California-licensed lawyers. The legislation bans attorneys from referencing past judgments in ways that might unduly influence consumers to retain their services and prohibits the use of awards that recipients must pay to receive. These advertising restrictions are designed to shield consumers from manipulative marketing tactics and ensure that legal services are promoted ethically. Both bills represent a major shift toward greater transparency and consumer protection in California's legal landscape, addressing concerns about predatory practices in both litigation funding and legal marketing.
The news release highlights Seber Bulger Law, a prominent legal firm specializing in personal injury, employment litigation, and LGBTQ+ rights representation. Led by attorneys Jonathan Seber and Jim Bulger, the firm has recovered millions in settlements for clients across Beverly Hills, Los Angeles, and surrounding communities. With over 20 years of collective experience, Seber Bulger Law exemplifies the type of ethical legal practice that these new regulations aim to support and promote throughout California's legal system.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, California Enacts Sweeping Legal Funding & Advertising Reforms
