The UK could be moving towards a major change in how consumers claim compensation.
The Law Commission of England and Wales is reviewing whether a broader consumer class action regime — potentially including expanded opt-out proceedings — should be introduced.
If reforms go ahead, it could become easier for large groups of consumers to be automatically included in claims involving issues such as data breaches, unfair pricing, misleading business practices, or mass consumer harm.
Nothing changes immediately. But the announcement is one of the clearest signs yet that the UK is seriously considering broader collective consumer compensation rights.
But what exactly does that mean?
What is an opt-out class action?
Most legal claims in the UK currently require people to actively sign up to take part. That’s why they are called “opt-in” claims.
An “opt-out” class action works differently.
Instead of individuals joining one by one, everyone who sits within the affected group is automatically included unless they choose to opt-out.
The idea is to make it easier for consumers to access compensation, particularly where:
- Millions of people may be affected
- Individual losses are relatively small
- Consumers may not even realise they have been impacted
- The cost of bringing individual claims would be unrealistic.
Not all claims are eligible to be opt-out
At the moment, true opt-out collective actions in England and Wales are limited to competition law claims heard in the Competition Appeal Tribunal (CAT).
That has allowed major cases involving companies such as Google, Apple, Meta, Amazon and Mastercard to move through the courts on behalf of millions of consumers.
But as cases are restricted to alleged breaches of competition law, not all claims are eligible to be opt-out.
The Law Commission will likely now consider whether opt-outs should become available across more areas of law.
Why is the Law Commission reviewing this now?
The review follows growing debate about whether UK consumers have enough practical access to compensation when large companies cause widespread harm.
The Law Commission says the project will examine whether a broader consumer class actions regime could improve access to justice, while still ensuring litigation remains proportionate and fair for businesses.
What types of claims could this affect?
At this stage, no final decisions have been made about the scope of any future reforms.
However, some legal commentators expect the review will consider whether opt-outs could be available across areas of law, such as:
- Data breaches and privacy issues
- Consumer protection breaches
- Environmental or mass consumer harm.
The Law Commission has also indicated that it will consider how any future class action system would interact with existing regulatory powers to avoid consumers being compensated twice for the same issue.
Why this could matter for consumers
One of the biggest problems with large-scale consumer harm is that many people never realise they may be eligible for compensation.
Even where claims succeed, participation rates can be surprisingly low.
A wider opt-out system could potentially reduce some of those barriers by automatically including affected consumers from the outset.
But opt-outs don’t solve the awareness problem.
In some opt-out cases, only a small percentage of eligible consumers have actually come forward to receive compensation payments.
The Law Commission has specifically highlighted the importance of ensuring damages are properly distributed to affected consumers — not simply awarded in theory. That growing focus on participation and distribution is likely to become an increasingly important part of any future UK collective action regime.
Could this affect data breach claims?
Potentially, yes.
The wider debate around reform has increasingly included disputes involving data privacy and consumer protection issues, with some existing collective claims already attempting to frame these issues through competition law.
At the moment, most UK data breach claims still require individuals to actively join legal action. If wider opt-out mechanisms were eventually introduced, it could significantly reshape how some future large-scale cyber incidents and personal data disputes are handled.
That does not mean every data breach would automatically become an opt-out class action. But it could create broader routes for collective redress where large groups of people are affected.
Businesses are also pushing for safeguards
The review is not simply focused on expanding litigation. The Law Commission has made it clear that it will also examine safeguards against speculative or abusive claims to avoid creating an excessive “litigation culture”.
That balance is likely to be politically important, particularly as collective actions continue to grow in size and visibility across the UK.
What happens next?
The project is still at an early stage. The Law Commission’s formal work is expected to begin in Autumn 2026.
Stakeholders including businesses, consumer groups, law firms and litigation funders are currently being invited to provide evidence and feedback before any proposals are developed.
In other words, any wider opt-out class action regime is still likely to be several years away.
But the direction of travel is becoming increasingly clear: the UK is actively exploring whether consumers should have broader collective rights to seek compensation when widespread harm occurs.
Scotland is already considering opt-out proceedings
Interestingly, Scotland may move faster than England and Wales in this area.
Scotland already has a legislative framework in place that could allow opt-out group proceedings to be introduced across a wider range of claims, without the need for entirely new primary legislation.
The Scottish Civil Justice Council (SCJC) is now actively reviewing whether opt-out proceedings should be introduced and, if so, how far they should extend.
While no immediate changes have been confirmed, many legal commentators now believe Scotland moving towards some form of wider opt-out regime may increasingly be a question of when, rather than if.
You can find out more about opt-out claims in our handy guide.
Join the Claim connects consumers with SRA-regulated lawyers. Visit the claim page to check your eligibility if a claim is open with one of our trusted legal partners. If a group action has not yet been launched, you can register your interest and we’ll keep you informed if a partner firm decides to take a claim forward.
