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ACSO responds to the CMA’s draft annual plan for 2020/21

Posted on Wed, 19/02/2020

In respond to the Competition and Markets Authority (CMA) consultation on their draft annual plan for 2020-21, Rachel Cairnes, Policy and Public Affairs Adviser at the Association of Consumer Support Organisations (ACSO) made the following comments:

“ACSO will limit our response to matters concerning increased competition and consumer protections within the civil justice sector, which includes the consumer and SME segments of the legal sector, which was previously the subject of review by the CMA, as outlined in the 2016 ‘Legal services market study’.

“We acknowledge the measures already taken to embrace the recommendations made by the CMA, including the establishment of the Remedies Programme Implementation Group (RPIG) to oversee the implementation of measures made to regulatory bodies.

“However, we support the view of Lord Keen of Elie QC, as outlined in a letter written to the CMA’s Chief Executive, that the report should be regarded as part of an ongoing process as the shape of the market is assessed in the years following its publication.

“This position of ensuring there is an ongoing review of the sector is supported by the CMA’s own comments “that there is an ongoing focus on the process of designing and implementing “better regulation” across government and the public sector more generally.” Given the FCA’s findings within this report; the size, continued growth and importance of the UK legal services sector; the limited available evidence that any actions from the 2016 report are addressing the low levels of innovation and competition (and the role regulation plays in this), it is timely for the CMA to revisit its previous work.

“A number of the recommendations made within the 2016 report aimed to establish a more substantial evidence base for future market research, particularly in relation to the growing unauthorised sector. Furthermore, the nature of the legal sector is changing due to a multitude of factors including technological innovation, regulatory development and changing consumer habits.

“ACSO urges the CMA to draw upon the wider evidence base, assess relevant research published since 2016 and/or commission further market and consumer-based research, and revisit its investigation into the legal services sector in order to discover what more needs to be done to ensure healthy competition and consumer protection within the market.

“ACSO whole-heartedly supports the CMA’s suggestion of greater engagement between regulators and industry (including bodies such as ACSO) to ensure a more proactive and engaging approach is undertaken to devise and manage regulatory frameworks. These should take into account industry expertise and insights to create better consumer outcomes through a more competitive, dynamic and innovative marketplace.”