Regulator rules standard of CQS firms exaggerated by Law Society ad

The Advertising Standards Authority have ruled that the advertising of the Conveyancing Quality Scheme “misleadingly exaggerated the membership requirements”.

According to the ASA, the promotion of the Law Society accreditation was done in a way which made the process of acquisition sound more rigorous than it actually was, reversing the decision made earlier in the year.

During the four years ending in 2016, the ASA discovered that no more than 12 firms had received visits regarding the CQS – at present, there are around 3,000 firms reported to hold the accreditation.

This ruling follows the case brought earlier in the year regarding the CQS, where the Law Society was found to have abused its dominant position having ordered firms to purchase its own training courses.

A complaint was brought in 2016 relating to the alleged requirements needed to obtain the CQS; “All Law Society [CQS] firms go through rigorous examination and testing to demonstrate that they have a high level of knowledge, skills, experience and practice.”

According to Chancery Lane, this equated to communicating the requirements of gaining and keeping hold of membership, ensuring that all accredited firms met a consistent standard.

The regulator contested this position, stating that this could be misinterpreted by consumers to mean each CQS firm had undergone an in-depth assessment, and that the standard reached surpassed that of other firms in the industry.

Whilst the ASA recognised that the accreditation was granted on the basis of information which had been verified independently, it stated that the standard required to obtain it did not exceed the minimum level of skills, knowledge, experience and practice expected by consumers.

The need for certain members of staff to take part in training was also highlighted by the Law Society, with Chancery Lane stating that in order to show knowledge of conveyancing, it needed to be undertaken within six months of the CQS being obtained.

However, the regulator stated that this time frame meant that firms could be granted the accreditation prior to any assessment or training being conducted by the relevant members of staff.

Whilst they noted the benefit of the training, they took the view that “readers of the ad would expect that all criteria would have been met prior to the accreditation being granted.”

In conclusion, the ASA ruled that the ad “exaggerated the level of knowledge, skills and experience possessed by a CQS-accredited firm and its staff, and the extent of the checks that a firm had to undergo to receive its accreditation.”

A spokesman from the Law Society commented on the ruling and the steps that would be taken as a result.

“We acknowledge the ASA council’s ruling and have taken steps to amend the advertisement. The advertisement was never intended to mislead consumers.

“The intention of the CQS scheme has always been to promote the highest standards of conveyancing practice and ensure consumer and lender confidence in conveyancing transactions.”

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