Class Actions in the UK Explained

The UK doesn't have a general US-style class action. Instead, there are a few separate routes. Competition law claims can be brought as collective proceedings in the Competition Appeal Tribunal, which can be opt-out, meaning you're included automatically. Most other group claims in England and Wales use group litigation orders, which are opt-in, so you have to sign up. A narrower representative action procedure also exists.

Collective proceedings in the Competition Appeal Tribunal

Since the Consumer Rights Act 2015, the Competition Appeal Tribunal, known as the CAT, can hear collective proceedings for breaches of competition law, such as price-fixing or abuse of a dominant position. A proposed class representative applies for a collective proceedings order, and the Tribunal decides whether the claims are suitable to proceed together and whether the representative is suitable.

• ✓Opt-out or opt-in. The Tribunal decides which. In opt-out cases, UK-domiciled class members are included unless they opt out; people outside the UK usually have to opt in.
• ✓Class representative. A person or body, not necessarily a class member, who runs the claim on the class's behalf, often backed by a litigation funder.
• ✓Collective settlements. A settlement must be approved by the Tribunal, which considers whether it is just and reasonable.
• ✓Unclaimed money. Damages that aren't claimed may go to a designated charity or, if the Tribunal allows, toward the representative's costs.

Group litigation orders

For claims outside competition law, such as product liability, data protection, financial mis-selling or environmental damage, the usual tool in England and Wales is a group litigation order under the Civil Procedure Rules. A court manages many individual claims that share common issues of fact or law together. Each claimant must join the group register, usually by signing up with the law firm running the case.

Representative actions

The Civil Procedure Rules also allow one person to sue on behalf of others who have the same interest in a claim. Courts have interpreted this narrowly for damages claims, because each person's loss usually has to be assessed individually. In practice, representative actions are used less often than the other two routes for compensation claims.

Scotland and Northern Ireland

Scotland has its own group proceedings procedure in the Court of Session. Northern Ireland has its own court rules. Competition claims from anywhere in the UK can go to the Competition Appeal Tribunal. If you live outside England and Wales, check which court a group claim is in and whether it covers you.

How you get paid

1. 1For an opt-out CAT case, wait for the settlement or judgment and then file a claim through the distribution process the Tribunal approves.
2. 2For an opt-in group claim, sign up with the claimant law firm before the deadline and keep your contact details current.
3. 3Provide whatever proof the distribution scheme asks for, such as purchase records or account statements.
4. 4Receive payment by bank transfer or another method set out in the scheme.

The UK is also home to many regulator-led redress schemes, where a company is required to review and refund customers directly. These aren't class actions, but they often pay more people. Our guide to settlements versus government refunds explains the difference from the US side.

Data protection claims

Many UK group claims in recent years have involved data breaches and misuse of personal data. Because damages for data protection breaches generally depend on each person's individual circumstances, courts have been reluctant to let them proceed as opt-out representative actions. Most data claims therefore run as opt-in group claims, where you sign up with a law firm. If you get a breach notification from a UK company, keep it. Our guide on what to do after a breach notice covers the practical steps, which apply in the UK too.

Choosing a group claim to join

• ✓Check whether the claim is registered with the court or still at an early stage.
• ✓Read how much of any recovery goes to the lawyers and funder.
• ✓Confirm whether you could owe anything if the claim fails. Many claims carry insurance against adverse costs.
• ✓Make sure you aren't signing up for two competing claims about the same issue.

Joining a group claim is a legal agreement, so take the same care you would with any contract. If you're unsure, the Citizens Advice service or an independent solicitor can help you understand the terms. Our guide to settlement scams also flags warning signs that apply to claim sign-ups.

SettleScout covers UK collective actions and group claims alongside US cases. Add the brands and services you use and the app will tell you when a UK claim includes you, whether you need to opt in, and when the deadline is.