SB 37 - Private Right of Action for Misleading Attorney Ads

on January 22, 2026

California's SB 37 is a law that strengthens regulations on attorney advertising and client solicitation, aiming to protect consumers from misleading practices. It prohibits certain types of advertisements and the use of "runners" or "cappers" to solicit clients, while also allowing consumers to take legal action against violators.

While existing ethics rules and statutes already prohibit many of these practices, enforcement has been hampered by limited resources at the State Bar. SB 37 empowers consumers by authorizing citizen enforcement against unlawful attorney advertising, capping, and illegal referral services.

An important concern in attorney advertising is the proliferation of so-called "vanity" or "ego" awards". As highlighted in various articles, the Federal Trade Commission (FTC) has cautioned consumers about these awards, which often involve lawyers paying for seals or badges that falsely suggest professional excellence. Such accolades can mislead individuals seeking legal assistance, making it challenging to distinguish between genuinely qualified attorneys and those leveraging purchased recognitions.

SB 37 directly tackled this issue by prohibiting references to awards or recognitions in attorney advertisements unless they are not conferred simply by virtue of being a member of the organization and there is no payment for the award. This measure ensures that consumers are not swayed by misleading claims and can make informed decisions when selecting legal representation.

The bill also codifies current ethics rules to prohibit misleading, deceptive, or false statements about an attorneys experience or record. Further all ads must identify who is responsible for the ad and disclosure of one office location for the lawyer or law firm.

Overview of California SB 37

California Senate Bill 37, signed into law in October 2025, aims to regulate attorney advertising and client solicitation practices. It introduces significant changes to how legal services can be marketed and how attorneys can interact with potential clients.

Advertising Regulations

Prohibited Statements: The bill bans misleading or deceptive statements in legal advertisements. This includes guarantees about case outcomes and references to awards unless they meet specific criteria.

Definition of Advertisement

 SB 37 expands the definition of "advertisement" to include any written, recorded, or electronic communication aimed at soliciting legal services.

Client Solicitation Restrictions

Capping and Runners 

The law strengthens existing prohibitions against "capping" (where non-lawyers steer clients to attorneys for a fee) and the use of "runners" who solicit clients in restricted areas.

Lead Generation 

The bill imposes new compliance requirements on lead generation companies, which may lead to a reduction in their operations within California.

Market Changes 

The law is expected to reshape the legal marketing landscape, potentially disadvantaging smaller firms that rely on lead generation services to compete with larger firms.

SB 37 empowers consumers to take legal action against attorneys who violate advertising rules, with penalties ranging from $5,000 to $100,000 per violation. The changes took effect on January 1, 2026, and are part of broader efforts to enhance ethical standards in the legal profession in California