Ethics of Attorney Advertising: The Effects of Different State Regulatory Regimes, The

C. COST AND QUALITY OF LEGAL SERVICES INCREASES WITH INCREASED INFORMATION EXCHANGE

Economic theory and empirical studies show a decrease in price for attorney services with increased advertising of price information.70 Studies show that attorneys who advertise charging reduced fees, however, the issue remains as to whether the reduction of payment affects the quality of legal services. Empirical studies show no general decline and what sometimes appears to be a linked increase in the quality of legal services.71 Furthermore, studies show no correlation between attorney advertising and malpractice cases against attorneys, meaning that attorneys who advertise are not sued for improper counsel any more than attorneys who do not advertise.72

D. PERCEPTION OF THE LEGAL PROFESSION IMPROVES WITH ADVERTISING

Detractors of attorney advertising argue that attorney advertising has a negative effect on the perception of the legal profession and individual attorneys. Empirical evidence shows an increase in "consumer's confidence in lawyers" with increased attorney advertising.73 One survey also shows that almost half of consumers who employed an attorney would have "preferred additional information before selecting that attorney."74 Furthermore, the decrease in cost and increase in quality of legal services with attorney advertising, as shown by studies previously discussed, may be important in terms of consumer perceptions of the legal profession.

E. CHANGES IN THE LEGAL ENVIRONMENT REQUIRE SHIFT IN APPROACH TO ATTORNEY ADVERTISING

Described as one of the main purposes for establishing both the Model Code and the Model Rules, the conditions in which law firms operate changed drastically in the last century. "Growth in the number of lawyers, law firms, and corporations competing in the legal arena is hampering the retention and expansion of business."75 Most large corporations now employ large in-house counsel staffs.76 Client loyalty seems to have eroded substantially because most large corporations no longer concentrate most of their legal work in one firm.77 The sheer number of lawyers competing for legal services has increased dramatically, with more lawyers practicing in the United States than ever before.78

CONCLUSION

Attorney advertising appears to have significant positive consequences for both the attorney and prospective clients, and although the regulations prohibit such blatantly unsavory behavior as false or misleading statements by attorneys in advertising, they do not alone accomplish their objectives and may in fact hinder the legal marketplace in a way that injures both attorneys and clients.

As the various forms of legal advertising expand, the issue of how to regulate these new forms will likely play a prominent role in legal ethics. Legal advertising has reached out in the 1990s to new forms, especially use of the Internet through home pages, website links, email, chat rooms, and newsgroup meetings.79 In November 1994, five law firms had websites on the Internet.80 Since the boom of the law firm website in the mid-1990s, the Internet has been used as an advertising tool in a variety of ways, including as a "yellow pages," and through a "virtual law practice."81