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Consumer Group Claims

Section 19 of the Enterprise Act inserts a new section 47A into the Competition Act 1998 to empower certain ‘specified bodies’ to bring proceedings for claims for damages before the Competition Appeals Tribunal (CAT), on behalf of a group of two or more named individual consumers.
 
Such claims may be brought before the CAT in respect of specific infringements (set out in the Act) which concern agreements, decisions and concerted practices which have the object or effect of preventing, restricting or distorting competition, and conduct which amounts to the abuse of a dominant position.

Claims may only be brought before the CAT after the OFT or European Commission (or the CAT on appeal from the OFT) has ruled that an infringement has actually taken place.
 
How can a specified body take a claim to the CAT?

For a specified body to take a claim to the CAT on behalf of a group of consumers, each consumer must give his or her consent to the claim being brought by the specified body, and the claims must relate to the same infringement of competition law.

In particular, the infringement that is relied upon must relate to goods and services that were received (or sought to be received) by the claimant otherwise than in the course of a business. Provided these conditions are met, it is also possible for existing claims being taken by individual consumers to be taken over by a specified body and dealt with together.
 
Any damages awarded by the CAT will be ordered to be paid directly to the represented consumers individually. Where the CAT is satisfied that all the individuals and the specified body are in agreement, it may order the damages to be paid to the specified body who will then enforce the award on behalf of the represented consumers.
 
How can a body apply to be specified?

In order to be designated as a specified body to bring claims on behalf of consumers, an organisation must meet criteria published by the Secretary of State. Designations are made by means of a Statutory Instrument.

Applications for designation should be made in writing and contain the information concerning the criteria set out in the guidance.

If you require further information on applying for specified status please contact:

John Madill
Consumer and Competition Policy Directorate
Tel: 020 7215 2132
e-mail: john.madill@berr.gsi.gov.uk