Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC staff, Antitrust Division support state legislation allowing legal form generating websites, (Jun 13, 2016)

By Greg Hammond, J.D.

North Carolina House Bill 436—a bill that would exclude legal form generating websites from the statutory definition of the practice of law—could lead to positive results, including lower costs and increased access to legal services, according to a June 10 letter sent to the North Carolina Senate by FTC staff and the Antitrust Division of the Justice Department.

"The practice of law should mean activities for which specialized legal knowledge and training is demonstrably necessary to protect consumers and an attorney-client relationship is present," the letter stated. "Overbroad scope-of-practice and unauthorized-practice-of-law policies can restrict competition between licensed attorneys and non-attorney providers of legal services, increasing the prices consumers must pay for legal services, and reducing consumers’ choices."

As a result, FTC staff and the Antitrust Division recommend that the North Carolina General Assembly consider the benefits of interactive websites for consumers and competition in evaluating the bill. Such software could be more cost-effective for some consumers, could exert downward price pressure on licensed lawyer services, and could promote more efficient and convenient provision of legal services, according to the letter. In addition, interactive form generating websites could help increase access to legal services by providing consumers more options for handling their legal needs.

The FTC staff and Antitrust Division, however, noted possible consumer protection concerns arising from such interactive software products, such as situations where tasks require the knowledge and skill of a lawyer. Nevertheless, the letter recommends that any consumer protections, such as requiring disclosures, be narrowly tailored to avoid unnecessarily inhibiting competition and new ways of delivering legal services that may benefit consumers.

"Competition between lawyers and non-lawyers for certain legal services can drive down prices, provide consumers with new and more convenient options, and expand access to legal services," said Principal Deputy Assistant Attorney General Renata Hesse of the Antitrust Division. "When analyzing House Bill 436, the North Carolina General Assembly should consider the benefits to consumers and competition that would result from allowing consumers to use interactive software to generate legal forms."

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