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10 September 2021 / Samantha Silver
Issue: 7947 / Categories: Opinion , Collective action
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Group actions: a perfect storm brewing?

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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

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