The CMA's market study, which has been commissioned by the government, will examine whether customers can 'drive effective competition by making informed purchasing decisions'. It will also question how regulation impacts on competition for the supply of services and if there are adequate protections in place to redress instances when legal services go wrong.
Focusing on the little guy
In particular, the CMA is looking to do case studies on will writing and probate services to individual consumers and employment law services to individuals and small businesses. Rachel Merelie, CMA senior director, commented: ‘It's vitally important that consumers and small businesses can access the legal advice and representation they need. They also need to secure value for money and quality when purchasing these services.’
Removing barriers to ABMs
The move comes as the government consults on removing barriers to entry for alternative business models in legal services and on making legal service regulators independent from their representative bodies. It says this will create a 'fairer, more balanced regulatory regime' that encourages competition and makes it easier for businesses, such as supermarkets and estate agents, to offer conveyancing, probate, and litigation services to the public.
Last resort
A recent survey found roughly one in ten users of legal services felt that the overall service and advice provided to them was poor value for money. Furthermore, only 13 per cent of small businesses viewed lawyers as cost-effective, with roughly half agreeing that they used legal service providers as a last resort to solve business problems. Sources: Solicitors Journal; Legal Business
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