Legal services providers should be required to publish information about price to help consumers navigate their way through the market, the Competition and Markets Authority says today. The long awaited final report of the legal services market study says people struggle to make informed choices because of a lack of transparency about price, service and quality.
Following a year-long study into the legal services market, the CMA says overall the legal services sector is not working well for individual consumers and small businesses.
Extra disclosure would come alongside the development of comparison sites and other intermediaries to allow customers to compare providers in one place by making data held by regulators available.
The competition watchdog also wants the Ministry of Justice to look into extending protection through redress schemes for customers who have used unauthorised providers.
The authority also recommends the MoJ reviews the current regulatory framework – under which representative bodies and regulators are separate but not entirely independent. The report concludes the current system is not a major barrier to competition but may not be sustainable in the long term.
It states that title-based regulation is 'insufficiently flexible' to apply proportionate, risk-based regulation and consider that regulators should be independent from government and representative bodies.
Rachel Merelie, acting executive director for markets and mergers, said: ‘You might not need a lawyer very often but when you do it will often be at a crucial point in your life – whether that’s buying a property, resolving a dispute or getting expert advice on financial and employment matters. So the transparency, affordability and accessibility shortcomings we have identified are a real concern.
‘Consumers who are equipped with the information they need to assess the services on offer and choose the best deal for them, will not just benefit personally but will also help drive competition, quality and innovation across the whole market. That means a better outcome for everyone and, importantly, fewer people will be discouraged from seeking the help they need.’
CMA report: law firms must publish their price information
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