The UK has a sophisticated collective action regime in place which will not be subject to immediate change as the UK is no longer a member of the EU.

What is the most common type of collective action you are seeing?

Data protection and breach of competition law.

What are the various ways a group could bring a collective action?

Two principal mechanisms exist for bringing collective actions: 

1. Group Litigation Order (‘GLO’) (CPR 19) - for claims which give rise to common or related issues of fact or law.
2. Representative Actions (CPR 19.6) - Where a representative has the “same interest” as all other affected individuals they bring the action on behalf of. 

If collective actions are permitted, are these opt-in or opt-out actions?

GLOs are opt-in only.

Representative Actions tend to be opt-out.

Does the law currently provide for private collective actions by consumers? 

If collective actions are permitted are the usual forms of relief permitted and can punitive damages be claimed?

Punitive damages can be awarded but must bear a reasonable relationship to the harm caused by the wrongdoer’s actions. They are reserved for situations where a wrongdoer has acted intentionally, recklessly or with gross negligence. 

Are bodies which represent consumers able to bring actions on their behalf? And if yes, can these bodies bring cross-border actions?

If the collective action is for a breach of competition law then a representative body (such as a trade or consumer association) is able to bring a claim on behalf of those affected.

Is third party funding of litigation permitted?

Yes.

Is litigation funding permitted for collective actions?

Are consumer groups and law firms allowed to advertise the collective actions they are running?

Yes, although advertising by law firms in the UK is subject to certain conditions.

Is there a formal mechanism to settle actions on a collective basis?

If the proceedings are opt-out collective proceedings in the Competition Appeal Tribunal (CAT), the class representative and the defendants who wish to be bound by a proposed settlement must make an application to the CAT for a collective settlement order.

If a trader loses a collective action does the law require the trader to publicise this?

Is there a penalty for non-compliance with a final decision issued in respect of a collective action?

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.