consumer rights

Opt-out collective actions (i.e. US-style class actions) can only be brought in the UK as competition law claims.  Periodic proposals  to legislate to expand this regime to consumer law claims have so far faltered.  However, this is now back on the Parliamentary agenda.  Several members of the House of Lords have indicated their support for expanding the regime to allow consumers and small businesses to bring opt-out collective actions for breaches of consumer law, and potentially on other bases.

If implemented, this expansion would be very significant and would allow for many new types of class actions in the UK.  Tech companies are already prime targets as defendants to competition-related opt-out class actions.  An expansion of the regime to allow actions for breaches of consumer law, as well as competition law, would only increase their exposure further.

As there is now limited time for legislation to be passed to effect such changes before the UK Parliament is dissolved in advance of an upcoming general election, this may be an issue for the next Parliament.  It will therefore be important to assess what the UK’s main parties say on this – and any manifesto commitments – in the run-up to the election.Continue Reading UK Opt-Out Class Actions for Non-Competition Claims back on Parliamentary Agenda

On 12 September, 2013, the European Commission formally adopted a proposal for a new Telecommunications Regulation (the “Regulation”).  The Regulation would, if enacted, reform the European Union’s telecommunication rules, including in areas such as net neutrality, spectrum allocation, roaming charges, and consumer rights in mobile and telecoms contracts.  The proposal is now being considered by the European Parliament and Council. 

This post, on reforms publicized as “consumer rights”, is the second part of a series on key aspects of the proposed Regulation.

The Regulation proposes a number of measures designed to strengthen the rights of European consumers in the telecoms and Internet access markets.  If enacted, the proposals, which are described further below, will phase-out roaming charges within the EU, compel telecoms companies and Internet Service Providers (“ISPs”) to provide more information to consumers about service levels, and will make it easier for consumers to switch providers.  In the short run, the measures are anticipated to hit revenues for telecoms companies (the Commission estimates an average annual loss of around 0.5% in revenue), but the Commission claims the benefits to consumers will also help business travellers, generating net benefits over the longer term for the economy.

Some of the key pro-consumer measures in the Regulation include:
Continue Reading EU Telecoms Regulation Proposals: Part 2 – New Consumer Rights