In 2016, the CMA carried out a market study into the supply
of legal services in England and Wales, concluding that
competition for individual consumers and small businesses was
not working well. In particular, there was not enough
information available on price, quality and service to help
those who need legal support choose the best option.
It also found that obtaining the right service at good value
can be challenging as consumers face wide variations in the
cost of similar services. They can also struggle to find
enough information to help them identify their legal need in
the first place.
The CMA made recommendations to industry regulators to
improve transparency by legal firms on price, quality and
service, and to enable customers to navigate the market more
easily and get value for money. It also made recommendations
on regulatory reform, including to the Ministry of Justice to
consider whether consumers of unregulated services need
stronger protections and to review the regulatory framework
for the longer term.
The CMA indicated in its market study report that it would
assess progress in the sector after several years and is now
doing so. Its short, focused review will assess the extent to
which the market study recommendations have been taken
forward and the impact that these changes have had on
competition.
The 3-month long
review will help the CMA examine if further measures are
necessary to increase consumer engagement and help drive
increased competition. It will look at existing evidence from
regulatory monitoring and other available research, as well
as submissions from interested parties.
As part of its review, the CMA has put out a call for inputs.
Further information is available on the legal services case
page.
