Representative actions in consumer protection cases
Starting Date: 12-07-06
Closing Date: 04-10-06
This consultation document and draft partial Regulatory Impact Assessment sought views on the implementation of representative actions in consumer protection cases. This proposal was previously consulted on as part of the Consumer Strategy, published June2005. This consultation seeks views on more detailed implementation issues.
There are instances where a breach of consumer protection legislation affects a number of consumers in a similar way. These consumers are unlikely to pursue damages individually due to the perceived complexities of the legal system and their relatively low individual losses compared to potentially high legal fees. We believe that there may be a role for a consumer body, or similarly interested organisation,to bring a case on behalf of such a group in an attempt to win damages on their behalf.
While we are keen to increase consumer access to justice we want to avoid exposing business to spurious or vexatious claims or unwittingly creating a compensation culture. The consultation therefore contemplated a number of safeguards.
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