In July 2023, the Competition and Markets Authority (CMA) investigated concerns arising from unregulated services in the Will writing, online divorce and pre-paid probate legal services industry. The investigation followed complaints that consumers were potentially exposed to risks such as:
- Misleading advertising which offered an initial low fee for advice but did not indicate the final fee could increase significantly;
- Being presented with unfair contract terms e.g. the exclusion of liability and failing to offer cancellation rights;
- Pressure selling.
In April 2024, following consultation earlier in the year, the draft form of the CMA’s guidance was published and was positively received, in the main, by several professional societies.
The CMA has now published the final guidance for these sectors.
The guidance sets out the requirements of consumer law and provides some practical checklists and case study examples to illustrate the types of issue and potential consumer law breaches that were identified.
The CMA also published:
- An open letter to unregulated businesses operating in the legal services sector; and
- Guides for consumers on what to consider when choosing a Will writer and/or choosing a divorce service provider.
All in all, it is a welcome step to protect consumers from poor practice in the legal services industry.