It should soon be easier for small firms to shop around for the right legal help, following a Competition and Markets Authority (CMA) decision earlier this month.
The CMA has backed FSB calls for greater transparency from legal service providers,
after its year-long study concluded that competition in the legal services market is not working well for consumers and small businesses.
That means legal providers will be required to display their prices up front, as well as other information on service, redress and regulatory status to help potential customers.
Mike Cherry, FSB National Chairman, said: “Many small businesses could benefit from greater use of legal services, but currently the market is complex and difficult to navigate.
“Smaller firms can often fail to recognise a problem as a legal issue, or assume a legal resolution to be too expensive, time consuming or risky to pursue. Greater transparency on price and quality of legal services will encourage more small businesses to seek expert advice when necessary.
“We’re pleased the CMA is now looking to close the gaps in the market we identified, by demanding greater transparency from legal service providers.”
The CMA has recommended frontline regulators work with the Federation of Small Businesses to deliver this improved transparency on price and quality for small businesses, and we look forward to this involvement.