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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

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
Britain’s new acknowledgement that Israel’s occupation is unlawful, and accompanying settlement-goods ban and sanctions, is significant but overdue, argue Danny Friedman KC and Victor Kattan in NLJ this week
New planning fee rises, wider trade union access rights and a service-by-email trap feature in Stephen Gold’s latest Civil Way
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
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