Protecting American Consumers Together (PACT) has announced the release of the second episode in its video series, "Billboard Lawyers Ruin Everything." The series aims to highlight how frivolous lawsuits contribute to rising insurance premiums and pose a threat to small businesses.
According to PACT, trial attorneys who heavily advertise, referred to as "billboard lawyers," often initiate litigation that results in high defense costs and liability exposures for small-business owners. This situation leads to increased insurance premiums and reduced operating margins. The organization emphasizes that small businesses, already facing challenges such as inflation and labor shortages, are particularly susceptible to lawsuit abuse. Even a single claim can impose significant financial strain. Through the "Billboard Lawyers Ruin Everything" series, PACT seeks to educate consumers and policymakers about how excessive litigation inflates costs across local economies and increases insurance expenses nationwide.
The U.S. Chamber of Commerce Institute for Legal Reform reports that small businesses bear a disproportionate share of tort liability costs in the United States. Businesses generating under $10 million in annual revenue are responsible for approximately $160 billion in tort costs, despite accounting for roughly 20 percent of total business revenues. These expenses lead to higher insurance premiums, diverting funds that could otherwise be used for employee wages, facility investments, or business expansion.
The U.S. Chamber of Commerce states that the total cost of the U.S. tort system reached approximately $529 billion in 2022—about 2.1 percent of the national GDP—equating to roughly $4,207 per American household. The Chamber attributes much of this cost increase to aggressive legal advertising and third-party litigation funding, which encourage excessive lawsuits and settlements. For small businesses, these rising costs result in significant insurance premium hikes and reduced affordability of liability coverage, impacting their long-term financial stability.
PACT is a national advocacy and educational organization committed to supporting plaintiffs, victims, consumers, and small businesses by ensuring access to a fair and transparent legal process. According to its official website, PACT works to expose what it describes as "exploitative practices by billboard lawyers" and advocates for reforms aimed at reducing abusive litigation and its economic impact. The organization produces media campaigns, research reports, and policy advocacy initiatives to promote fairness within the U.S. civil justice system.