The Competition and Markets Authority (CMA) has issued warnings to seven unregulated providers of wills and online divorce services.
- CMA’s investigation revealed practices such as aggressive upselling and refusal to provide refunds by these providers.
- These firms have been advised to amend contract terms and practices to align with consumer protection laws.
- The CMA plans to conduct compliance reviews and may take enforcement actions if necessary.
- Guidance has been published to aid consumers in choosing their wills or divorce service providers.
The Competition and Markets Authority (CMA) has taken significant steps towards regulating the practices of unregulated wills and online divorce service providers. Seven firms have been issued warnings due to their involvement in aggressive upselling, refusal to issue refunds, and failure to address consumer complaints. This action follows the CMA’s comprehensive investigation, initiated in July 2023, into the broader practices of unregulated will writing and online divorce services.
The CMA has advised these unnamed firms to acknowledge the warnings and work on revising their contract terms to conform with consumer protection laws. The letter stresses that these businesses should: ensure their terms are fair to consumers, prevent unfair price increases or hidden fees, avoid unfair liability limitations, and ensure any subscription-related terms, such as those concerning will storage, are clear and equitable.
Furthermore, businesses are obligated to perform their services with due care and skill, without resorting to sales tactics that could be considered aggressive or otherwise contrary to statutory obligations. There is an impending compliance review, which will assess the sector’s adherence to consumer law in offering will writing, online divorce, and pre-paid probate services. If businesses are found lacking, enforcement actions may ensue.
Importantly, the CMA’s scrutiny does not imply that unregulated providers are inferior to their regulated counterparts. It is a move to enforce transparency and fairness, with local authority trading standards equipped to independently enforce consumer law. The recently enacted Digital Markets, Competition and Consumers Act 2024 has also furnished the CMA with enhanced enforcement powers, including the imposition of financial penalties for consumer protection law violations.
The CMA has published new consumer guides to assist individuals in making informed decisions regarding will writers or divorce service providers. As Hayley Fletcher, CMA’s interim senior director for consumer protection, noted, alternatives to traditional law firms can indeed provide cost-effective solutions, particularly during financially constrained times. However, it remains crucial that such services do not exacerbate difficulties through misleading or unfair practices.
The CMA’s intervention underscores the necessity for ethical practices in legal services, ensuring consumer protection remains paramount.
