Claim farmers often use unethical and high-pressure tactics to target those such as child abuse victim-survivors.
The NSW Government is introducing the Claim Farming Practices Prohibition Bill 2025, to:
- prohibit a person from contacting another person to solicit them to make a relevant claim
- prohibit a person from buying or selling a relevant claim referral
- prevent lawyers who are convicted of these offences from charging legal costs in relation to the claim, and to require them to refund any costs already received.
Claim farmers may obtain someone’s personal information without consent to make unsolicited contact and use high-pressure tactics such as harassment and intimidation.
The practices used by claim farmers can cause distress to victim-survivors who are pressured to lodge civil compensation claims.
Claim farmers charge referral fees to ‘sell’ the claim to a legal practice or another claim farming organisation.
They often make promises about legal entitlements that may not be correct or in the claimant’s best interests.
The bill will prohibit claim farming for personal injury claims under the Civil Liability Act 2002 and arising from intentional torts (intentional acts that result in injury or death).
The Civil Liability Act 2002 applies to many types of claims, including serious injury, medical negligence, and public and product liability.
Intentional torts cover acts such as child abuse, assault and deprivation of liberty.
Existing offences such as fraud will still apply in addition to the claim farming bill. Dishonestly obtaining financial advantage by deception currently carries a maximum penalty of 10 years’ imprisonment.
Prohibiting claim farming will not prevent abuse victims from bringing a claim for compensation, which can be done by contacting a lawyer directly.
Attorney General Michael Daley said:
“It’s abhorrent that individuals and organisations are seeking to profit off vulnerable people such as victim-survivors of child sexual abuse.
“The NSW Government is listening to advocates who have called for a ban on this predatory and exploitative practice that worsens the trauma experienced by victim-survivors.
“We have carefully consulted with the community and are moving to stop the harm inflicted by this egregious behaviour.”
