Concerns over the effects of 'Tesco law'

THE Law Society of Scotland yesterday re-iterated concerns about consumer-led companies providing legal advice, as Tesco launched its new on-line legal store selling DIY divorce kits for £7.49.

Sir David Clementi, the former deputy governor of the Bank of England, has been commissioned by the government to carry out an independent review into the deregulation of legal services, which could allow everyone, from banks to supermarkets, to offer legal advice.

The move was already dubbed "Tesco law" by Lord Falconer, the Lord Chancellor, before the supermarket group became involved.

However, the Law Society of Scotland, which has already submitted its response to the consultation paper, repeated its worries about the "potential impact on the consumer".

Bruce Ritchie, director of professional practice, said the society was extremely concerned by issues regarding the independence of advice and potential conflict of interest.

"Consumers need to be sure that the advice they’re receiving is impartial and independent," he said. "The system needs to be governed by a regulatory system where consumers interests aren’t compromised by certain interests or the need to hit targets". He added that, although it was clearly up to the consumer, there is "no adequate substitute for good legal advice".

Tesco’s on-line legal service offers products including tenancy agreement forms for 4.49, books offering advice on rogue traders, and even triple clubcard points with its last will and testament kit. It also offers links to websites where customers can find a lawyer in their area.

However, the launch is being viewed by experts as a precursor to a move into legal advice, should the regulations change, bringing the supermarket into direct competition with more traditional law firms.

Andrew Harrison, chief executive of the RAC, has already signalled his intention to push the vehicle breakdown operator further into legal services.

A spokesman for Tesco said that, while the group was focusing on its legal service, which had proved "extremely successful" during its first 24 hours, she admitted that it the supermarket was "aware of developments" in the sector.

Shares in Tesco closed down 1.75p at 267.25p.