Prohibited contact in relation to potential claims
5 Prohibited contact in relation to potential claims
A person commits an offence if the person—
contacts another person (a potential claimant) to solicit the potential claimant to make a claim, and
the person making the contact—
receives consideration because of the contact, or
agrees or expects to receive consideration because of the contact, or
asks for someone else to receive consideration because of the contact, or
agrees to someone else receiving consideration because of the contact.
Maximum penalty—500 penalty units.
A person commits an offence if the person—
contacts a potential claimant to refer the potential claimant to another person to provide a service in relation to a claim, and
the person making the contact—
receives consideration because of the contact, or
agrees or expects to receive consideration because of the contact, or
asks for someone else to receive consideration because of the contact, or
agrees to someone else receiving consideration because of the contact.
Maximum penalty—500 penalty units.
A person must not arrange for a third party to contact a potential claimant in contravention of subsection (1) or (2).
Maximum penalty—500 penalty units.
This section does not apply—
if a potential claimant is contacted by a notice given under the Civil Procedure Act 2005, section 175, or a corresponding law, in relation to representative proceedings, however described, or
if a law practice—
contacts a potential claimant that the practice has provided legal services to, and
reasonably believes the potential claimant will not object to the contact, or
if a law practice contacts a potential claimant after receiving—
a request to do so by a representative of a community legal service or industrial organisation, and
confirmation the representative reasonably believes the potential claimant will not object to the contact.
Subsection (4) places an evidential burden on the accused.
This section applies regardless of whether the potential claimant—
is entitled to make a claim, or
has decided to make, or has made, a claim.
In this section—
community legal service has the same meaning as in the Legal Profession Uniform Law (NSW).
contact a potential claimant includes personally approaching or contacting the claimant—
in person or by mail, telephone, email or another form of electronic communication, and
individually or as a member of a class of persons.
corresponding law means the following—
the Federal Court of Australia Act 1976 of the Commonwealth, Part IVA,
a law of another State or Territory that relates to representative proceedings, however described,
another law prescribed by the regulations.
industrial organisation has the same meaning as in the Industrial Relations Act 1996.
solicit includes induce.
This Act’s bill:Explanatory memorandumSecond reading speech
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