Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that consumers understand the contractual obligations they enter when signing digital or electronic agreements with claims management or legal services firms.

The legal and claims management sectors are regulated independently of government. The Solicitors Regulation Authority (SRA) is responsible for regulating the professional conduct of solicitors and most law firms in England and Wales, including claims management activities they undertake. The Financial Conduct Authority (FCA) regulates specified claims management activities carried out by claims management companies.

The government supports the action taken by the FCA and the SRA to ensure consumers receive clear and fair information before entering digital or electronic agreements.

The FCA requires claims management firms to ensure that all digital and electronic agreements are clear, fair, and not misleading, and that customers fully understand the agreement and services before signing. FCA action on misleading online promotions led to 9,197 promotions being withdrawn by claims management firms in 2024.

The SRA requires firms to provide clear information before any agreement is entered into – including about costs, termination provisions and ensuring proper client authority – whether instructions are given in person or online.