Wednesday 18 April 2012

The threat of "Tesco law".


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The threat of Alternative Business Structures means that Law firms are under threat from large, non legal, corporations such as Tesco’s who will be offering legal services for a fraction of the price. What is ABS you may ask? The legal services act 2011 means the ownership of legal services providers   will now be open to anyone deemed competent or 'proper', for example a supermarket or building society – hence the sobriquet "Tesco law". These providers will be subject to the same requirements and regulations as solicitors. So soon, tescos will be able to offer cheap divorces or execute an uncontested will or convey property- basically they will be able to perform legal tasks that are currently the monopoly of solicitors. Although the quality of service will be questionable to say the least, we live in a society where the consumer is increasingly cost conscious and price driven, quality is often compromised for the sake of “a good deal”.  This is a serious threat to modern lawyers. 

Tesco law, where quality is questionable.
There has been a scramble to prevent any damage before tescos and co are unleashed on the legal world. QualitySolicitors have launched a national high street branch network in a bid to become the first ‘household name’ legal brand. In the same way that specsavers became a nationally recognised brand, QS are rebranding many high street firms to become an umbrella corporation, with uniforms, logos and quirky animated characters all in an attempt to become the big brand name for legal services. QualitySolicitors chief executive Craig Holt said: ‘The threat posed by “Tesco law”  is so grave because of the lack of recognised, customer service-focused brand names in the legal market. Visibility on the high street, along with a high-profile marketing campaign including on primetime television, will transform QualitySolicitors into the first household name legal brand... we aim to dominate the legal market before the “Tesco law” entrants can even get off the ground'. Branches have extended opening hours including weekends and they are even opening branches in shopping centers.  WHSmiths have leapt onto the bandwagon and now have legal access points in their stores (well I guess no one buys half the stuff there anymore, Kids download music, dvds and books these days! Smart move smiths) Although god knows why Amanda Holden was chosen to announce it's opening.. 

Is this the answer? to me QS is not the solution to the tescos threat. Whilst I understand the logic and think its a great idea, to me something doing quite sit right. Re-branding well established law firms strips a firm of its soul, history and subsequently its cliental, People choose solicitors for their reputation through the community, we appreciate firms that have history because it shows how successful they are. To me, QS is almost tacky advertising! We like our solicitors to have that personal touch and to be recognisable, high streets are not for brand names. Perhaps this would work for large city firms where the personal touch isn't so important. But for a high street it simply wouldn't work. I know where I live, if a branded shop opens in the high street there's an outcry of "greedy corporations ruining our high street!" - although we didn't complain so much when costa coffee opened.  

A legal face lift?
Has the minds behind QS considered the biggest issue with nationwide brands? It only takes for one small office to ruin the whole brands reputation? what happens if these so called "quality" firms aren't so quality after all? I know great firms that are of genuine quality whom have rejected the offer to become part of the brand because they (rightly) felt they have an established reputation within the community and do not fear the threat of ABS enough to forsake this. Which means that those who do join the branding are most likely those that had something to fear, second rate firms without the reputation to survive the tescos monster. Those that felt they needed soulless branding to give them the edge in the new market. 

So should lawyers be threatened by tescos and co? Anyone intelligent would know you have to pay for quality, when it costs about 2k for a divorce by a professional but tescos are offering one for £300 alarm bells would immediately start ringing. Clients who cannot afford experienced legal advice or don’t understand the importance of professional service will jump the chance of using the well known and cheaper brands. However but it is likely that they will subcontract the work to 'law farms' – probably not based in the UK, where the staff are not expensive, and thus not necessarily too experienced.  However, does this counter balance the dropping of legal aid? ABS will make divorce and wills available to those who cannot afford legal services and would usually be the recipient of legal aid.


nHow can we ensure clients don't defect to Tescos? The modern lawyer will have to specialise in niche markets, become an expert in more complex and specific fields. It’s likely non legal businesses will dominate fields such as undefended divorces, simple wills and conveyancing, thus the lawyers should practice more complex areas of law, such as disputed wills, welfare law, human rights- thus the modern lawyer will need to be of the highly knowledgeable, dedicated and passionate about the law.

nFurthermore, the one thing Tesco's and other big corporations will not be able to offer is personal serviceLawyers have, historically, a reputation for being stuffy, old fashioned and out of touch with society but we can pride ourselves on having a good client/solicitor service. Solicitors see cases through from begining to end, this is unlikely to be the case at tescos. If you phone your solicitor they can tell you exactly how far your case has gone, how soon you can expect the decree nisi to be declared etc. Tesco's law farms will not be able to provide this, everything will be stored on computers or in large files, there will be various people handling all the different cases and it will be near on impossible to track your case specifically. In other words, there is no personal touch, no reassuring guidance or human service. This will be the biggest downfall of ABS. n
 
As a law student seeking a training contract, I know the last thing I want it to be working for tescos after 4 years slogging it at law school. Even if it is as a lawyer. The approval of ABS by the law society has left me feeling a little let down. We all know the law society is a fan of free market but this has really tightened the nail in a prospective trainees coffin. With even less demand for trained solicitors what hope in hell do we have securing that ever elusive training contract? I have found a distinct lack of criticism regarding QS too, the law gazette seems to be giving it free advertising by praising it weekly, however when I read the comments from REAL solicitors, I see i'm not alone in my aversion- and i'ts not just because they  don't offer training contracts! One outrages solicitor exclaimed "Is this what my education and training has come to? If I am to be a shop keeper then I would rather sell something that displays better, like cakes" this is certainly a sentiment I share, and not just because I love cake.  But I agree that QS will ruin the reputation of the profession and one can only imagine  the horror of daily mail headlines that will ensue...