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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

Womble Bond Dickinson—Paula Myers

Womble Bond Dickinson—Paula Myers

Womble Bond Dickinson appoints Paula Myers to private capital team in Leeds

mfg Solicitors—five promotions

mfg Solicitors—five promotions

Law firm mfg Solicitors announces five promotions at Birmingham office

Brabners—six promotions

Brabners—six promotions

Brabners adds six to partnership in record year for partner promotions

NEWS
Calls to raise the age of criminal responsibility from 10 to 14 have been renewed, with the Bar Council arguing the current threshold criminalises children too early and risks pushing them towards lifelong offending
The legal profession's AI challenge extends far beyond fabricated case citations, according to a warning about the next phase of technological risk
Law firms should use the transition period before the Financial Conduct Authority (FCA) assumes anti-money laundering (AML) supervision to strengthen governance and compliance, experts have warned
Cross-border disputes increasingly demand creative approaches to gathering evidence, with litigators needing to look beyond traditional letters of request
A Court of Appeal ruling has clarified the distinction between contracts of 'indefinite' and 'perpetual' duration, with potentially significant implications for commercial drafting
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