As more people become aware of their rights and the power of their voices, they are joining forces to hold corporations accountable for practices that are harmful, unethical, or misleading.
Whether it’s environmental concerns, faulty product claims, or data breaches, individuals are demanding more transparency, accountability, and ethical behaviour from businesses. In this guide to ‘consumer activism group litigation’, we’ll explore the essential role legal action plays as everyday people stand up against corporate misconduct.
Jargon buster
Understanding legal terms is crucial when navigating group litigation. Helping to remove the jargon, here are some key terms explained in plain language:
Consumer activism
Consumer activism happens when everyday people use their purchasing power and/or collective voice to influence corporate behaviour and push for higher standards. Popular forms of consumer activism include:
- Boycotts
- Petitions
- Social media campaigns
- Legal actions (including group litigation)
Group litigation
Also known as collective or class actions, group litigation sees consumers band together and pursue justice through a combined lawsuit. For many people, taking legal action against large corporations can seem impossible due to the high costs, lengthy procedures, and intimidating nature of individual lawsuits. However, group litigation removes these barriers, and consumers can collectively address widespread injustices that affect them all.
The link between consumer activism and group litigation
When individuals unite to address a shared grievance against a corporation, they have more power to initiate change. But sometimes, regardless of how many people have been harmed, consumer activism needs a more robust effort to influence corporate behaviour. Group litigation is one of the most powerful ways to force companies to address harmful practices that would otherwise go unchallenged.
In the UK and around the world, there are numerous examples where consumer-led group actions have resulted in meaningful change. For instance:
The Volkswagen emissions scandal
One notable example of group litigation is the lawsuit against Volkswagen – otherwise known as the diesel emissions scandal or ‘dieselgate’.
In September 2015, the United States Environmental Protection Agency announced that Volkswagen had been using illegal “defeat device” software in its diesel engines to cheat emissions tests. This resulted in nitrogen oxide (NOx) emissions up to 40 times higher than the legal limit. Elevated NOx levels are linked to over 64,000 premature deaths annually, not to mention their substantial impact on the climate, contributing to global warming.
Further investigations revealed the widespread use of defeat devices by Volkswagen and other car manufacturers. Eventually, Volkswagen agreed to a £193 million settlement for affected vehicles, but emissions cases against other car manufacturers are still ongoing – including in the UK.
This scandal highlighted the widespread impact of corporate malfeasance on the environment and public health. However, the subsequent group litigations did force positive change. In addition to the tightening of emission regulations across the world, decarbonisation is now central to Volkswagen and other manufacturers’ strategies, with companies embracing clean, e-mobility technology.
Mis-selling of financial products
Several UK banks faced lawsuits for mis-selling Payment Protection Insurance (PPI) to customers who didn’t need it. This resulted in a long-standing litigation process that saw thousands of UK consumers reclaim billions in compensation.
Although these cases were handled individually rather than through a formal group action, the sheer volume of complaints highlighted widespread misconduct in the financial sector, prompting regulators to impose stricter guidelines and improve oversight to prevent future abuses.
British Airways data breach
Following a data breach that compromised the personal information of around 500,000 customers, passengers launched a group litigation claim against British Airways (BA) for its inadequate security measures. This case was eventually resolved on confidential terms. BA was also fined £20 million by the UK’s data protection watchdog (the ICO) for the breach.
The BA lawsuit prompted discussions about data protection. Since the attack, the airline has considerably improved its IT security, underscoring how consumer-led litigation can spur changes in industry-wide practices to protect future customers.
Talc cancer scandal
The talc cancer scandal is a harrowing example of the need for consumer-led group litigation. Gaining significant global attention, this case involves allegations that Johnson & Johnson, a leading manufacturer of talcum powder, knowingly sold products that contained asbestos, a harmful substance linked to cancer. Consumers – primarily women who used talcum powder for personal hygiene – allege that regular use of these products exposed them to the risk of developing ovarian cancer and mesothelioma.
Concerns first arose when scientific studies suggested a possible link between talcum powder and certain cancers, particularly for those using it for prolonged periods. As awareness grew, thousands of affected individuals united in group lawsuits against Johnson & Johnson, alleging the company failed to disclose the potential risks and neglected consumer safety for profit.
Johnson & Johnson has agreed to pay billions of pounds in compensation to settle cancer cases in the US, and UK lawyers have now launched similar claims.
Under mounting public pressure and facing billions in legal payouts, Johnson & Johnson announced in 2020 that it would discontinue its talc-based baby powder in North America, later expanding the decision globally. It also pushed companies toward more rigorous product testing and safer ingredient alternatives to protect future consumers.
Why group litigation empowers everyday consumers
Group litigation makes justice accessible, affordable, and effective. Here are just some of the reasons why it has become a favoured tool for consumer activists:
- Shared costs: Legal fees can deter individuals from taking on large corporations. But in group litigation, costs are shared among all participants, significantly lowering each person’s financial burden. Furthermore, many cases operate on a no-win, no-fee basis, making it even easier for individuals from all backgrounds to join the action.
- Increased bargaining power: Corporations often have extensive legal resources, which can intimidate individual claimants. But consumers can level the playing field when they join forces in a group litigation. The cumulative value of their claims and voices can command more media attention and increase the chances of a settlement or favourable ruling.
- Addressing systemic issues: Unfortunately, individual cases often go unnoticed or fail to capture the systemic nature of corporate misconduct. However, with group litigation, patterns of malpractice become evident. By addressing these issues collectively, consumers can prompt regulatory changes and encourage companies to adopt more responsible practices.
- Overcoming intimidation: Taking legal action against a major corporation can be daunting. Many consumers fear retaliation or simply lack the confidence to face corporate legal teams. Group litigation mitigates these fears, making it easier for individuals to participate in a legal action when seeking justice.
For more details on group litigation’s pros (and cons), check out ‘Group litigation benefits and risks: What you need to know before joining a claim’.
The impact of consumer activism group litigation on corporate behaviour
The above cases demonstrate how group litigation amplifies consumer activism. It’s not merely about seeking compensation but setting precedents that deter corporations from unethical actions. By coming together, people send a clear message that misconduct has consequences.
Holding corporations to account in ways that extend far beyond the courtroom, here’s a look at the broader impact of group litigation:
- Policy and regulatory changes: High-profile cases shine a light on regulatory gaps or outdated policies. When consumers come together to highlight harmful practices, regulatory bodies often take note, leading to strengthened consumer protection laws.
- Corporate compliance and ethical business practices: Successful consumer-led group litigations remind companies of the risks associated with unethical practices, motivating them to improve their operations proactively. This might mean enhanced transparency, higher product safety standards, or better security measures.
- Industry-wide transformations: Some group litigation cases have led to sweeping changes within entire industries. In this way, consumer-led group actions don’t just hold single companies accountable; they prompt change that affects the wider industry, setting new standards for competitors as well.
- Empowering societal values: Beyond regulations and policies, group litigation reflects the values society wants to uphold – such as fairness, honesty, and responsibility. When consumers unite in a lawsuit, they’re not just seeking personal redress but advocating for the type of world they want to see.
The power of consumer activism group litigation
As well as addressing consumers’ immediate grievances, group litigation drives systemic changes that benefit society at large. These actions remind corporations that accountability to consumers and ethical practices are good business sense and integral to sustainable success.
In the UK, consumer activism via group litigation is on the rise, and is proving to be a powerful vehicle for everyday people who want to make a difference. With every successful case, the message to corporations becomes clearer: consumers are no longer passive buyers but active stakeholders.
If you’re ready to be part of this movement and stand up for your rights, consider joining a group litigation effort today. Check out the UK’s leading group litigation claims with Join the Claim.
Together, we can make a difference, one case at a time.
