CMA Investigates Unregulated Legal Services: Consumer Protection Concerns and Market Risks
The Competition and Markets Authority (CMA) in England and Wales is launching an investigation into firms offering unregulated legal services, such as will-writing, pre-paid probate plans, and online divorce services. The CMA is concerned that some firms may not be complying with consumer protection laws, putting customers at risk.
The CMA has identified several areas of concern, including misleading advertising, unfair contract terms, pressure selling techniques, lack of transparency, and inadequate quality of service. These issues could potentially harm vulnerable customers and lead to delays or financial difficulties for bereaved relatives.
Sarah Cardell, Chief Executive of the CMA, emphasized the importance of ensuring that customers receive a fair deal when using legal services, especially during challenging times in their lives. The CMA will be reaching out to firms offering these services to gather more information about their practices and is inviting feedback from consumer advocates, professional bodies, trade associations, and consumers who have used unregulated legal services.
The investigation aims to protect consumers and ensure that firms offering legal services comply with general consumer laws. Updates on the investigation will be published on the CMA’s website, and interested parties can submit their responses to the CMA by September 4, 2023.
For more information on the CMA’s consumer protection enforcement guidance and the legal services market in the UK, interested parties can visit the CMA’s website or contact the CMA press office for media inquiries.