header-logo header-logo

Group actions: a perfect storm brewing?

10 September 2021 / Samantha Silver
Issue: 7947 / Categories: Opinion , Collective action
printer mail-detail
56829
Merricks v Mastercard heralds a new era of opt-out claims: what does this mean for insurers & consumers? Samantha Silver reports

The move towards US-style opt-out group claims becoming the norm in the UK took a huge step forward last month when the Competition Appeal Tribunal (CAT) certified the first application for a collective proceedings order (CPO) on an opt-out basis in Merricks v Mastercard [2021] CAT 28.

While the sheer size of the potential damages—an eye watering £7.2bn—stole the headlines, the case has many implications for consumers, lawyers, funders and insurers. Indeed, although the case is due to be the largest group action in English history, perhaps of more significance is the cultural shift it signifies in the potential for opt-out group actions to become more widely available in the UK. With several large group actions waiting in the wings, the floodgates could be about to open.

Background

The CPO regime was introduced under the Consumer Rights Act in 2015; however, it has taken until now for the first

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
back-to-top-scroll