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22 April 2026
Issue: 8158 / Categories: Legal News , Collective action , Competition , Consumer
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Class action overhaul?

The government is considering wholesale reform of consumer class actions—the ‘opt-out’ collective claims certified by the Competition Appeals Tribunal (CAT)

The Law Commission, which advises the government on law reform, will begin work on the project in the autumn, assessing how to improve access and distribution of damages while maintaining proportionate costs. It has invited lawyers and other stakeholders to complete an initial scoping questionnaire by 30 October.

The Commission will assess whether certain sectors are disproportionately targeted by litigants, evidence of pent-up demand for opt-out consumer claims, and whether opt-out claims are vulnerable to being exploited and creating a litigation culture.

It will look at the benefits and risks involved, funding, costs, settlement, the definition of ‘consumer law claim’ and ‘class’, and whether the regime should allow ‘opt-in’ as well as ‘opt-out’ claims.

Martyn Day, co-president of the Collective Redress Lawyers Association (CORLA), described the project as ‘a timely and important step towards closing the UK’s justice gap.

‘At present, the avenues open for large groups of individuals with the same claim to take legal action against companies are limited, so a mechanism that makes it much easier for those groups of individuals to club together makes great sense. It is also a step in the right direction in terms of us not being left behind by our continental European neighbours who are implementing the EU Representative Actions Directive that allows opt-out cases to be brought on behalf of consumers.’

Jeremy Marshall, chief investment officer at third-party funder Winward Litigation Finance, said: ‘For it to work in practice, it is vital that the government recognises and protects the role of litigation funding, without which these claims can’t be brought. They should have a good look at how funders and consumer groups have worked collaboratively in Australia.’

MOVERS & SHAKERS

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis wills and probate team extends reach with two appointments

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
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