March 26, 2019

March 26, 2019

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March 25, 2019

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UK Consumer Rights Act 2015: New Advance in Private Antitrust Enforcement

On 1 October 2015 the UK Consumer Rights Act 2015 (CRA 2015) entered into force, bringing with it a raft of changes pertaining to consumer protection law and competition law litigation.

The CRA 2015 sets the scene for the future proliferation of competition damages actions in the United Kingdom and consolidates the country’s reputation as one of the most advanced competition regimes in Europe.

The new rules introduce a series of significant changes to facilitate claims, including the establishment of a fast-track procedure for simple claims, the introduction of a collective settlement regime, and an extension of the limitation period for actions before the Competition Appeal Tribunal (CAT), the United Kingdom’s specialist competition law tribunal.

Arguably the most controversial and high-profile measure is the introduction of collective proceedings before the CAT which, subject to the CAT’s discretion, can be brought on an opt-in or opt-out basis for both follow-on and stand-alone claims.

The CAT will certify claims that are eligible for inclusion in collective proceedings. In this regard the following three conditions must be met. There must be an identifiable class; the claim must raise common issues; and it must be suitable for collective proceedings, taking into account, inter alia, whether or not collective proceedings are an appropriate means for the fair and efficient resolution of the common issues, the costs and benefits of the collective proceedings, and the size and nature of the class.

If the CAT decides that collective proceedings are appropriate, it then determines whether the proceedings should be “opt-in” or “opt-out”.  The CAT will take into account all the circumstances, including the estimated amount of damages that individual class members may recover, the strength of the claims, and whether it is practical for the proceedings to be brought on an opt-in or opt-out basis.

If appropriate, the CAT will also authorise an applicant to act as class representative.  The representative must not have, in relation to the common issues for the class members, a material interest that is in conflict with the interests of the class members, and must be someone who would act fairly and adequately in the interests of all class members.

In order to prevent the rise of a “litigation culture”, certain safeguards are included. For instance, the CAT may not award exemplary damages in collective actions, and contingency fees, i.e., damages-based agreements whereby the lawyers are paid a proportion of the damages obtained, are not permitted in opt-out collective actions.

There will no doubt be considerable up-front litigation surrounding the issue of class certification before the first cases get off the ground. It is likely, however, that the mere threat of class actions before the CAT will represent a powerful weapon in the hands of the claimant when negotiating a settlement.

© 2019 McDermott Will & Emery

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About this Author

Andrea Hamilton, McDermott Law Firm, Antitrust Attorney
Partner

Andrea Hamilton is a partner in the law firm of McDermott Will & Emery LLP based in its Brussels office.  She is a member of the Antitrust and Competition Practice Group.  Formerly based in the Firm’s Washington DC office, Andrea focuses her practice on mergers, acquisitions, government investigations, and complex antitrust litigation, with significant experience in life sciences, high tech, pharmaceuticals, defence, consumer products, health care and chemicals industries.

Andrea’s broad industry experience includes particular focus in the aerospace and defense, life sciences,...

32 2 282 35 15
Wilko van Weert, EU Competition Lawyer, McDermott Will Emery, Brussels Law firm
Partner

Wilko van Weert is a partner in the international law firm of McDermott Will & Emery, based in its Brussels office.  His practice focuses on EU competition, EU regulatory and EU trade law, with a particular emphasis on the interface between competition and intellectual property law.  This is reflected in his significant representation of clients in the media and broadcasting sector, as well as those in industries such as high-tech electronics, automotive, aviation, biotechnology, oil and paper.

32-2-282-35-65
David Henry, European Competition Attorney, McDermott Will Emery Law firm

David Henry is an associate in the international law firm of McDermott Will & Emery, based in its Brussels office.  His practice focuses on European competition law including merger control, cartels and abuse of dominance, and his clients include companies in the air transport, chemicals, electronics and semi-conductor products, food retailing and digital map industries.  He also advises clients in proceedings before the European courts. 

32 2 282 35 69