Can a law firm market its services by paying to appear in a community welcoming program's profile book and by offering discounts through a health club's member-benefits program?
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This page answers the general question as of 2021. Ezel answers yours: whether it's allowed on your facts, under the current Oregon Rules of Professional Conduct, with citations.
Plain-English summary
A law firm markets its services two ways. First, through a welcoming program that distributes materials to executives and professionals new to the community; the firm pays a fee to appear as a one-page profile in a bound book alongside healthcare professionals, banks, real estate companies, and the like, and is the only lawyer-participant. Second, through a health club's member-services program that gives members free initial and will consultations and discounted fees from participating lawyers; the firm would appear on a list of merchants offering introductory discounts or through coupons, and the club receives no money for listing the firm. The opinion asks whether the firm may participate in each, and answers yes to the first and yes, qualified, to the second.
On the welcoming program, the opinion applies Oregon RPC 7.2(a), which allows a lawyer to advertise through written, recorded, or electronic communication. Because the materials are printed and, under Oregon RPC 7.1, truthful and not misleading, participation is permitted. The opinion notes Oregon RPC 7.3 (solicitation) does not apply because the welcoming program is not operated to procure legal work, and that RPC 7.2(b) also permits the activity so long as the program merely publicizes the availability of legal services rather than recommending the firm.
On the health club program, the opinion applies Oregon RPC 7.2(b), which bars a lawyer from giving anything of value for recommending the lawyer's services except in listed circumstances. Although the firm pays no fee, by lending its name, prestige, and discounted services the firm effectively gives the club a valuable endorsement and an exclusive benefit it can pass to members, making the club a third-party beneficiary when new members join. The opinion concludes the value the club receives must be compared against the reasonable cost of the advertising: if it does not exceed that cost, Oregon RPC 7.2 is not violated.
In practice
The opinion holds that, under the Oregon rules, the welcoming-program participation is straightforwardly permitted printed advertising, while the health-club arrangement turns on a value comparison: the benefit the club derives from the firm's endorsement must not exceed the reasonable cost of the advertising the firm receives. Per the opinion, that comparison is the controlling test for the health-club program. Verify the current text of Oregon RPC 7.1, 7.2, and 7.3 before relying on any specific point.
Common questions
Q: Can a law firm pay to appear in a community welcoming program's profile book?
A: Yes. The opinion concludes printed, truthful, non-misleading participation is permitted under Oregon RPC 7.2(a) and 7.1, and that the solicitation rule (RPC 7.3) does not apply because the program is not run to procure legal work.
Q: Can a firm offer discounts to a health club's members as a membership benefit?
A: Yes, qualified. The opinion concludes the firm effectively gives the club a valuable endorsement, so the value the club receives must not exceed the reasonable cost of the advertising under Oregon RPC 7.2(b).
Q: What makes the health club arrangement a concern under the recommendation rule?
A: Per the opinion, the firm's name, prestige, and discount offer give the club an exclusive benefit it passes to members, placing the club as a third-party beneficiary; that is the "thing of value" RPC 7.2(b) measures against reasonable advertising cost.
Background and rules framework
The opinion interprets Oregon RPC 7.1 (false or misleading communications), 7.2(a) and (b) (advertising and payment for recommendations), and 7.3 (solicitation), corresponding to Model Rules 7.1, 7.2, and 7.3.
Citations and references
Rules of Professional Conduct:
- Oregon RPC 7.1 / Model Rule 7.1 (false or misleading communications)
- Oregon RPC 7.2(a), (b) / Model Rule 7.2 (advertising; payment for recommendations)
- Oregon RPC 7.3 / Model Rule 7.3 (solicitation)
See also
- OSB Ethics Op. 2005-108: Dual Professions and Yellow Pages Advertising
- OSB Ethics Op. 2005-73: Accepting Referrals and Thank-You Gifts
- OSB Ethics Op. 2005-79: Legal Services for Church Members and Causes
Source
- Landing page: https://www.osbar.org/ethics/toc.html
- Original PDF: https://www.osbar.org/_docs/ethics/2005-112.pdf
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