Partner Article

CBI supports Competition Law Consultation

The CBI has offered its support to the launch of a Department for Business consultation into private actions in competition law.

New proposals would make it easier for businesses and consumers to challenge firms they believe are acting anti-competitively.

Commenting on the consultation, Matthew Fell, CBI Director for Competitive Markets said: “It’s absolutely right that the victims of competition law breaches receive proper compensation.

“We are pleased that the Government shares our view that redress should be delivered in a cost effective way, with litigation a last resort.

“This means promoting Alternative Dispute Resolution methods which are increasingly being used by business, and often result in a better outcome for both parties.”

However, the CBI has expressed concern over Government preference towards ‘opt-out’ class actions, which group potential claimants together without naming individuals. They are worried that this could fuel litigation by magnifying the total number of claims.

Fell continued: “The introduction of ‘opt-out’ actions risks sowing the seeds of a class action beanstalk.

“In the US, they grew out of all proportion to the damage they were seeking to redress and had to be reined in by Congress.

“‘Opt-out’ actions will be inextricably linked with third-party investors and as a result are likely to create a new business in collective litigation, which is not the sort of industry we want to encourage in the UK.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .