Fee-Sharing Opinion May Signal Bad News for Avvo

A South Carolina ethics opinion on fee-sharing highlights a potential obstacle for services like Avvo, which match lawyers willing to provide defined legal services with clients who pay a fee up front. The July 14 advisory opinion targets variable marketing fees, saying such arrangements amount to a “contingency advertising fee” rather than a “cost that can be assessed for reasonableness.” Such services might also violate rules that ban lawyers from sharing fees with non-lawyers or paying for a referral, the opinion suggests. The ABA Journal looks at the issue.

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