Legal services to be probed by competition watchdog

Legal services are being probed by the competition watchdog amid concerns that some customers could end up paying more than expected or are getting a poor service.

The Competition and Markets Authority (CMA) wants to see if legal services are working well for consumers and small businesses.

It has launched a market study in to the sector across England and Wales to look at "long-standing concerns about the affordability of legal services and standards of service".

The CMA said the legal services sector is a significant part of the UK economy, with an estimated turnover of around £30 billion. Legal services include the provision of advice or assistance as well as being represented in a court of law. They cover a broad range of services such as commercial law, employment law, family law, buying a house, immigration, wills and probate and personal injury.

Senior director at the CMA, Rachel Merelie said: "Whether it's buying a property, resolving disputes or getting expert advice on financial and employment matters, it's vitally important that consumers and small businesses can access the legal advice and representation they need."

Market studies look into whether markets are working well. The CMA must announce within six months whether it intends to refer the market for a more in-depth investigation.

The study will look at whether customers can drive effective competition by making informed purchasing decisions and whether customers are adequately protected from potential harm or can obtain satisfactory redress if something goes wrong.

It will also examine the impact of regulations on competition for the supply of legal services.

Ms Merelie continued: "We want to see if some customers end up paying more than they expected or receive a poor service. We also think there may be questions over the redress available if this does happen."