Pricing transparency guidance for the Scottish legal sector was due to come into effect earlier this year to help consumers understand the cost of legal services. However, this has been postponed until January 2021.
Under the guidance, firms should publish price information about their services, but this need only be indicative. The guidance will not apply to firms which provide only legal services to businesses or those that solely undertake legal aid work.
While firms may have concerns about publishing prices, it is widely believed that price transparency may in fact be good for firms that fully embrace it.
Convener of the Law Society of Scotland Regulatory Committee,Craig Cathcart, said:
“The past six months have been exceptionally challenging for the legal profession and the Regulatory Committee decided to delay the introduction of the guidance to allow firms to respond to the immediate issues presented by Covid-19. It is important however, that as we continue to adapt to the current environment, we also progress key areas of work.
“The guidance has been developed to improve price transparency and encourages solicitors to proactively publish information to help people seeking legal services make better-informed choices. Whether someone is thinking of buying a new home, wants to make a will or set up a power of attorney, or they may have separated from a partner or have an employment problem, we hope members of the public will be able to get a better idea of the typical costs involved in such cases early on.
Earlier this year, David Kerr from Moore Legal Technology discussed the pros and cons of publishing prices, ultimately concluding that it is possible for firms to benefit from publishing prices.
He writes:
The internet is an enormous, fluid marketplace that enables all of us to search, to compare and to find the best deal. Publishing your prices is a bold statement about the value of your offering.
If you can save your ideal client the extra effort of having to ask for your prices, you save time for both of you. What’s more, you’re also a step ahead in establishing trust – and that’s priceless.
Craig Cathcart provides further insight on why this is a positive step for the Scottish legal sector:
“As well as increasing clarity for consumers, it can help improve access to justice. A report published by the Competition and Markets Authority on the legal services market in England and Wales a few years ago indicated that some people are put off seeking professional legal advice altogether as they are worried about price. This could ultimately cost them even more – financially and emotionally – if left unresolved.
“Research has highlighted that people can over-estimate typical costs, so having a clearer picture will help to scotch some of the myths about the presumed high price of going to a solicitor for legal advice. A number of Scottish law firms are already publishing their prices to help demystify the costs of legal services for consumers and this new guidance should improve price transparency around the country and encourage people to speak to a solicitor to resolve any legal issues sooner rather than later.
“While the very nature of legal services means that unforeseen complexities can arise, potentially leading to additional work and expense, we firmly believe that having a better understanding from the outset will benefit both the consumer and solicitor working on their behalf.”