The majority of class actions in the UK operate on an ‘opt-in’ basis.
This means that in order to participate in a claim, each prospective class member has to actively join the proceedings or authorise another to bring the claim on their behalf.
Adopted by the UK in 2015 are ‘opt-out’ proceedings. These permit a single person to bring a claim on behalf of an entire ‘class’ of those damaged by the breach of competition law, without express permission from each of the class members.
The opt-out regime is much more effective than opt-in proceedings. In the former, a single person can bring the claim on behalf of millions of affected individuals (see for example, Boyle V Govia Thameslink Railway & Others, where a single person, Mr Boyle, represents approximately 1 million rail passengers in proceedings valued at in excess of £500m. if the same case were brought on an opt-in basis, each of the 1 million class members would need to opt into the claim, which would be expensive and very time consuming.
In opt-out proceedings the individuals in the class are bound by the Tribunal’s judgment and will share in damages.
Until recently, opt-in class actions were the only route to collective redress, but the UK adopted opt-out proceedings in 2015 which are rapidly becoming the dominant collective redress regime.