The question of misleading advertising of conveyancing prices was raised in 'Adapting for the future', a consultation paper sent out by the conveyancing services working party.
The main concern was to prevent solicitors advertising a low price, and then adding a number of additional charges which consumers may have assumed were included in the advertised price.
A majority of respondents to the consultation asked for a change to the publicity code.
On 25 October 1995 Council resolved to amend the code with effect from 1 January 1996.The publicity code has always prohibited misleading and inaccurate publicity.
The standards and guidance committee believes that many of the examples cited already breach the code and were persuaded that it would assist to spell out in the code some examples of misleading, and so improper, advertising of conveyancing prices.
The amendments add new sub-paragraphs to the code as follows:1.
General principles.(d) Statutory requirements.As a matter of professional conduct the publicity of a solicitor must comply wit h the general law.
Solicitors are reminded, inter alia, of:...(i)(a) ss.20 and 21 of the Consumer Protection Act 1987 concerning misleading price indications;5.
Statements as to charges.(f) Fees for conveyancing services.In publicity which includes references to charges for conveyancing services, regard must be had to para 1(c) above (misleading or inaccurate publicity) and para 5(a) above (clarity in statements as to charges).The following are examples of publicity which would breach these provisions:(i) publicity which includes an estimated fee pitched at an unrealistically low level, if the solicitor then charges higher or additional fees;(ii) publicity which refers to an estimated or fixed fee plus disbursements, if the solicitor then charges as disbursements expenses which are in the nature of overheads such as normal postage and telephone calls, unless the publicity explicitly states that such charges will be made;(iii) publicity which includes an estimated or fixed fee for conveyancing services, if the solicitor then makes an additional charge for work on a related mortgage loan or repayment, including work done for a lender, unless the publicity makes it clear that any such additional charge may be payable (eg by use of a formula like 'excluding VAT, disbursements, mortgage related charges and fees for work done for a lender');The full text of the Solicitors Publicity Code Amendment (No.2) Provision 1995 will appear in the next PSD Bulletin.
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