Collective Actions

Opt-out collective actions are legal cases brought on behalf of a group affected by anti-competitive behaviour. Claimants are automatically included unless they choose to opt out. When not all eligible claimants claim their share, any funds leftover following a distribution process are known as undistributed damages.

We’re working with legal representatives and funders in a number of cases to ensure any leftover funds are put to good use.

Under the Consumer Rights Act 2015, The Access to Justice Foundation is the prescribed charity designated to receive undistributed damages from opt-out collective actions in the UK. This role allows us to improve access to justice by ensuring that even undistributed damages enable access to justice by funding the legal help that people need.

We’ve been recognised for this role several times, including in the Merricks v Mastercard case, the UK’s largest collective action settlement at £200m, where the Tribunal confirmed us as the appropriate recipient for unclaimed funds.

When collective action cases settle or result in unclaimed damages, we act as a backstop, ensuring that no money gets lost and that every pound does meaningful work.

Undistributed damages offer a new funding stream for charities working with marginalised communities who may have been impacted by the issues at the heart of collective action cases.

This model ensures justice reaches beyond the courtroom and into communities, making sure that collective actions deliver lasting benefits to the public.

This is a new and developing area of law and, while several collective actions are now progressing through the Competition Appeal Tribunal, we haven’t yet seen enough cases to establish any clear patterns.

We believe settlements should work similarly to post-trial outcomes, as they do in many other countries, and we’re actively engaging with cases while working alongside key partners across the sector to ensure the regime fulfils its purpose.

We’re committed to developing a strategic framework that maximises the benefit of undistributed damages. Part of this is building partnerships to ensure we’re building an approach that works for everyone involved, from class representatives and legal teams to consumer advocacy groups and advice organisations.

We collaborate with key sector partners including the Collective Redress Lawyers Association (CORLA), the Association of Consumer Support Organisations, and the Class Representatives Network.