Tesco law 'presents no challenge to small firms'

Published on 21 May 2010 under category: legal

More than 200 small firms have signed up under a new collective organisation that plans to challenge the new supermarket legal advice firms.

Over 200 small firms have convened under a collective brand name that aims to ward off the threat of supermarket legal services.

The organisation launched 15 branches today (May 21st), the Times has reported.

Recent moves by high street names to provide legal advice at reduced prices could change the overall landscape of the legal industry.

According to the newspaper, the serious intent of retailers such as Co-operative to poach clients from traditional firms is the first sign of the expected impact of the radically reforming Legal Services Act.

However, the managing director of Co-operative Legal Services told the Times: "Yes, we are a threat, [but] are we going to try and wipe out small firms? No."

The Legal Service Act was passed in 2007 and introduced the concept of Alternative Business Structures.

These can force forms to outsource basic functions and administration procedures in order to become more competitive.

However, some critics believe that the relaxation of structures could lead to what has been dubbed 'Tesco law', where firms are forced to sell legal services as products.

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