What is a Class Action?

If a company or organisation has wronged one person, it’s likely that other people will have also experienced the same or similar maltreatment from the party responsible. Seeking justice or compensation as an individual can be daunting and is quite often unattainable. But, when we come together, taking legal action becomes a lot easier and far less intimidating.

In the US, a class action lawsuit refers to the single course of legal action taken by an individual on behalf of another group of people who also claim to have the same problem.

When a class action lawsuit is successful, redress (financial compensation) from the defendant can be distributed between everyone affected. If you’re not familiar with the terms ‘defendant’ and ‘claimant’, feel free to take a look at our glossary of legal terms.

So, you’re a UK citizen and you have an issue that you believe could potentially be widespread. You decide you’d like to get in contact with other people that may have also been affected by the same issue. Is seeking class action a viable option?

Yes it is - and it has many benefits. But there are some differences as to how class action lawsuits operate in the UK in comparison to other jurisdictions.

Opt-in and opt-out regimes

Class action lawsuits in the US operate on an ‘opt-out’ basis. This enables an individual or a small group of people to represent a whole class of other people who may have been affected by the same issue. The opt-out regime means that it’s not essential for every potential claimant to be identified or known by whoever is pursuing the case - all potential claimants are automatically included before the lawsuit is filed unless they ‘opt-out’.

On the other hand, collective actions in the UK mainly operate on an ‘opt-in’ basis. This allows only identified claimants who have made their own claim and are actively involved in the proceedings to be awarded compensation if the case is won.

Whether the legal system in the UK should extend opt-out regimes to more areas of law is still widely debated. Opt-out class actions in the UK are currently only permitted given the issue falls under the branch of consumer competition law. In simple terms, competition law aims to level the playing field in the corporate world by keeping levels of competition fair between companies. You can find out more about breaches of competition law here.

Collective Action in the UK

The term ‘Class Action’ is mostly used in the US, where claims operate on an opt-out basis. In the UK, collective action is generally taken in the form of Group Litigation.

Group Litigation Orders (GLOs) follow an opt-in regime. As explained above, this means that all claimants must be identified and make their own claim if they are to receive any compensation. They enable multiple people with similar issues to join together. Some benefits of GLOs include splitting the cost of litigation, increased negotiating power, and shared knowledge and legal advice.

To find out more about GLOs, head over to our other article on Group Action here, or take a look at the guidance on the Official Government website.

How can I find others with the same problem as me?

Find Others can help you find other people who have been also been wronged by the same organisation. If you have a problem that you think may have also affected other people, you can search for existing campaigns or start your own campaign on our site for free.

If you create a Find Others campaign on public mode and share it to social media platforms, anyone should be able to see it and mark their support. Likewise, if you find an existing campaign that addresses your issue, you can support and share the campaign to social media platforms. We also provide you with the option to add a petition to your campaign. To discover the benefits of adding a petition to your campaign, you can find our guidance article here.

Our tools now enable you to turn your campaign into a legal case, so you can find and connect with legal advisors on our site who will guide you every step of the way.

Disclaimer: The content of this article is for informational purposes only, and is not to be taken as legal advice.