Claims farming: the tension between access to justice and consumer protection in Australia
Published on June 2, 2025 by Matthew Forshaw
Claims farming, also known as claims harvesting, is a practice where third-party entities solicit individuals who may have legal claims, usually personal injury claims, and then sell these leads to law firms.
While sometimes framed to help injured parties connect with legal representation, the reality is far more problematic. It is a practice that has been widely condemned and is now banned in many Australian jurisdictions, due to the significant risks it poses to consumers and the justice system. However, while the prohibition of claims farming is well-justified, it is important to strike a balance that still ensures genuine access to justice, particularly for vulnerable individuals who may struggle to find legal help.
The ethical and legal concerns of claims farming
There are several strong reasons for banning claims farming, and multiple jurisdictions across Australia have acted against it due to the following concerns:
- Exploitation and misrepresentation– claims farmers frequently target vulnerable individuals, such as those recovering from injuries, often using aggressive or misleading tactics to convince them to pursue a claim.
- Privacy and data breaches – claims farmers have been known to obtain personal details through questionable means, including data breaches or improper access to accident records. This raises significant privacy concerns.
- Financial incentives over client interests – unlike traditional legal practitioners, claims farmers operate on a profit-driven referral model rather than a duty to act in the client’s best interest. This can result in poor quality legal representation or unnecessary litigation being pursued.
- Increased costs and systemic strain – claims farming often leads to an increase in questionable or low-merit claims, which places pressure on compensation schemes, insurers, and courts, ultimately leading to higher costs for genuine claimants and the public.
- Undermining professional standards – by commodifying legal claims, claims farming weakens the integrity of the legal profession and erodes trust in personal injury lawyers, who are already heavily regulated to ensure high ethical standards.
The Australian approach: banning claims farming
Recognising these dangers, various Australian jurisdictions have moved to ban claims farming, particularly in areas such as workers’ compensation and motor vehicle accidents. For example:
- Queensland led the charge with The Motor Accident Insurance and Other Legislation Amendment Act 2019 (Qld), which introduced strict prohibitions on claims farming. These reforms effectively targeted practices in personal injury claims, including motor accidents and workers’ compensation carrying hefty penalties.
- Other states such as South Australia, have also taken steps to clamp down on this practice through enhanced legal advertising restrictions and consumer protections. In September 2024 South Australia introduced the Statutes Amendment (Claim Farming) Bill 2024 to prohibit claim farming in personal injury claims.
- New South Wales has now joined these efforts with the recent passing of the Claims Farming Practices Prohibition Act 2025 (NSW). This marks a significant step in tackling unethical claims farming practices.
The introduction of these bans reflects a growing consensus that claims farming is harmful to both consumers and the broader legal system. However, in implementing these prohibitions, we must also be mindful of ensuring that they do not create barriers to access to justice for individuals who genuinely need legal assistance.
Balancing the ban with access to justice
While claims farming is widely seen as exploitative, it is important not to conflate lead generation with legitimate client outreach. Individuals who have suffered injuries often do not know their rights or how to navigate the legal system.
Some of the very same issues that made claims farming attractive—lack of awareness, difficulties finding representation, and concerns about legal costs—still exist. Therefore, while banning unscrupulous practices, we still must ensure that people with legitimate claims can still access legal advice in a timely and ethical manner.
What are possible ways to get this balance right?
There are many possible ways to strike this balance include:
- Improved public legal education – Governments and legal bodies need to ensure that individuals understand their rights and the legal avenues available to them.
- Ethical advertising and direct client engagement – while restrictions on claims farming are essential, allowing law firms to market their services directly (within ethical guidelines) ensures clients are informed about their options.
- Enhanced pro bono and legal aid support – ensuring that individuals can access legal assistance through community legal centres, legal aid schemes, or industry-funded models will help those who might otherwise turn to claims farmers.
- Clearer regulations for client introductions – rather than an outright ban on all referrals, a structured and transparent referral system could help ensure legitimate client connections while preventing unethical practices.
The banning of claims farming in personal injury claims in Australia has been a necessary and justified step in protecting vulnerable individuals from exploitation. The practice has led to unethical solicitation, privacy breaches, inflated legal costs, and systemic strain. However, in implementing these prohibitions, it is critical to ensure that access to justice is not unintentionally undermined. A balance must be struck between protecting consumers from predatory practices and ensuring they can still connect with high-quality, ethical legal representation when they need it most. By refining existing regulatory frameworks and promoting ethical client outreach, we can uphold both consumer protection and access to justice—two fundamental pillars of a fair legal system.
Please note that this article does not constitute legal advice. If you are seeking professional advice on any legal matters, you can contact Carroll & O’Dea Lawyers on 1800 059 278 or via our Contact Page and one of our lawyers will be able to assist you. If you or a loved one have been injured, use our Personal injury Claim Check now.
Disclosure and important note: This article is based on our own legal research and thinking. Some of its content has been generated with the assistance of artificial intelligence. The authors have checked and approved this article, including the AI generated content, for publication.
