The UK's Draft Bill on Collective Redress Proceedings: Does it Really Address Small Damages Claims?


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ŞAHİN E.

European Competition Journal, no.10, pp.435-452, 2014 (Scopus)

  • Publication Type: Article / Article
  • Publication Date: 2014
  • Journal Name: European Competition Journal
  • Journal Indexes: Scopus
  • Page Numbers: pp.435-452
  • Erzincan Binali Yildirim University Affiliated: No

Abstract

The rational apathy of those who suffer small losses because of competition infringements results in practice in the filing of very few, or no, actions for damages. A collective redress action allows the representative party to sue on behalf of numerous aggrieved parties whose damages claims are bundled up to be dealt with in a single proceeding. This procedural device can be a remedy for this problem insofar as it is designed to overcome it. In the UK, as experience shows, the level of private competition law enforcement is low and representative actions for consumer claims have not been successful in providing compensation. In order to alter this private enforcement landscape, a draft Bill has been put before Parliament to amend the current law concerning collective proceedings. The article argues that some elements of the UK’s proposed collective redress action have fallen short of addressing small claimants. It therefore suggests possible ways to overcome rational apathy.