The Consumer Council urged the Law Society yesterday to explain why it told members not to undercut a fixed fee on a Housing Authority tender.
The council stepped in after the Law Society wrote to its members telling them not to put in bids below $3,500 a flat for conveyancing work on the sale of 7,600 Home Ownership Scheme flats.
Trade Practices head Ron Cameron said: 'The Law Society has a responsibility to explain to Hong Kong consumers the reasons behind the agreement.' The council would examine the issue, Mr Cameron said. But the move, he said, seemed similar to those the Government had said impaired economic efficiency in its Statement of Competition Policy, a non-legally binding statement urging avoidance of price-fixing.
But Mr Cameron admitted the Law Society could ignore the demand for an explanation.
The Housing Authority has ruled out penalising solicitors who took part in the price-fixing agreement.
The Law Society has criticised the authority's tendering procedure for causing cutthroat competition which would hurt quality.