UK: Competition overhauls open utilities to more class actions

With the upcoming competition reforms and the establishment of the Competition and Markets Authority approaching, reports say utilities will face threats of more class actions.

New legislation aimed to close loopholes and nix legal shortcomings in the current competition regime, some of which make it difficult for consumers to bring group legal action against companies, will make it easier for consumers to launch class actions against firms found to have violated competition law. Some legal experts say this will be an additional deterrence against companies’ anticompetitive practices.

Among the new legal proposals is the establishment of accredited organizations with the sole purpose of representing consumer groups looking to bring action against a company.

That accreditation will not be given to private legal firms, said Guy Laugher, a lawyer at Pinsent Mason. Rather, the accreditation will likely to go trade associations and consumer groups.

Under current UK policy, consumers must opt into collection action if it is available.

Full Content: Utility Week

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