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22 October 2025
Issue: 8136 / Categories: Legal News , Collective action , Litigation funding , Competition , Consumer
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Collective actions at ‘critical juncture’

The opt-out collective actions regime is facing ‘significant challenges’ but could benefit the UK by £24bn a year if enhanced and expanded, a report by Stephenson Harwood has found

The firm’s report, ‘Realising the benefits of competitive markets’, calls for opt-out cases in the Competition Appeal Tribunal (CAT) to be extended to cover data privacy breaches, consumer protection violations and other mass harms as well as competition law breaches. It recommends introducing pre-action protocols and improving early case management, including costs budgeting and stricter timetabling to keep budgets under control in complex cases, and reversing the effects of the Supreme Court’s PACCAR decision to encourage funders to invest.

It recommends the CAT bring approval of funding arrangements forward to the certification stage—helping parties avoid later disputes.

If boosted to work more effectively, the CAT could deter between £12.1bn and £24.2bn of rip-off prices and other harms to consumers and small businesses annually, it finds, equivalent to up to £840 per household.

However, the report, which uses data from litigation analytics platform Solomonic, notes the number of cases has declined from 17 in 2023 to only three filed in the first nine months of 2025. It highlights years of delays in cases, which it attributes to procedural complexities, strategic litigation by defendants, and the PACCAR Supreme Court decision which has stalled litigation funding.

Genevieve Quierin, partner at Stephenson Harwood, said: ‘The regime stands at a critical juncture, facing challenges that undermine its ability to operate effectively.

‘Rather than restrict, we need to nurture the system.’

In his foreword to the report, former CAT president Sir Gerald Barling says that he hopes the government, which is currently considering a review of the regime, will not curtail or remove the ‘only means by which multiple claimants—each suffering relatively small amounts of financial loss—can achieve justice’.

MOVERS & SHAKERS

Bellevue Law—Lianne Craig

Bellevue Law—Lianne Craig

Workplace law firm expands commercial disputes team with senior consultant hire

EIP—Rob Barker

EIP—Rob Barker

IP firm promotes patent attorney to partner

Muckle LLP—Ryan Butler

Muckle LLP—Ryan Butler

Banking and restructuring team bolstered by insolvency specialist

NEWS
The Supreme Court has delivered a decisive ruling on termination under the JCT Design & Build form. Writing in NLJ this week, Andrew Singer KC and Jonathan Ward, of Kings Chambers, analyse Providence Building Services v Hexagon Housing Association [2026] UKSC 1, which restores the first-instance decision and curbs contractors’ termination rights for repeated late payment
Secondments, disciplinary procedures and appeal chaos all feature in a quartet of recent rulings. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, examines how established principles are being tested in modern disputes
The AI revolution is no longer a distant murmur—it’s at the client’s desk. Writing in NLJ this week, Peter Ambrose, CEO of The Partnership and Legalito, warns that the ‘AI chickens’ have ‘come home to roost’, transforming not just legal practice but the lawyer–client relationship itself
A High Court ruling involving the Longleat estate has exposed the fault line between modern family building and historic trust drafting. Writing in NLJ this week, Charlotte Coyle, director and family law expert at Freeths, examines Cator v Thynn [2026] EWHC 209 (Ch), where trustees sought approval to modernise trusts that retain pre-1970 definitions of ‘child’, ‘grandchild’ and ‘issue’
Fresh proposals to criminalise ‘nudification’ apps, prioritise cyberflashing and non-consensual intimate images, and even ban under-16s from social media have reignited debate over whether the Online Safety Act 2023 (OSA 2023) is fit for purpose. Writing in NLJ this week, Alexander Brown, head of technology, media and telecommunications, and Alexandra Webster, managing associate, Simmons & Simmons, caution against reactive law-making that could undermine the Act’s ‘risk-based and outcomes-focused’ design
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