Certain law firms will have to display all their price information after tighter transparency rules were given the go-ahead.

CILEx Regulation this week received approval from the Legal Services Board to alter its requirements on firms.

The rule change will mean that firms regulated by CRL will be the first required to publish price and service information for all legal services provided to consumers and to small businesses. This obligation previously only applied to prices for conveyancing, probate and immigration services.

Around 60 firms regulated by CRL will have to display all price information in a ‘prominent, clear and accessible format’ as well as provide information about the mix of staff delivering services.

The regulator said: ‘The changes will make a positive difference to consumers looking to access legal services by increasing transparency and information access.

‘A clear and uniform presentation of key information across provider websites will help consumers and small businesses to make an informed decision when selecting a legal services provider.’

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Chief executive John Barwick added that the rule change, which follows a consultation earlier this year, has the backing of the firms it regulates.

CRL is the first regulator to make the jump to requiring costs information for all consumer services, going further than counterparts such as the SRA. Solicitors firms are currently only mandated to publish price information on conveyancing, some immigration services, unfair or wrongful dismissal claims in employment tribunals (for both consumers and businesses) and – for businesses – debt recovery claims up to a value of £100,000 and licensing applications. The CRL noted in its consultation that the SRA has an option to extend price and service rules to all legal services.

Transparency became a pressing issue after the Competition and Markets Authority reported in 2016 that the legal services market was not working well for individual consumers and small businesses. The CMA expressed particular concern that consumers could not make informed choices because of a lack of information about price, service and quality. A further review in 2020 said progress had been made but with limited outcomes.

An evaluation of solicitor firms’ compliance last year found that just 42% claimed to be publishing all the information required by the SRA. Dozens of firms have been fined for breaching transparency rules. Actions include fixed penalty fines of £750 for first offences of failure to publish information and £1,500 for subsequent breaches.

 

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