New research suggests public support for opt-out collective actions increases once people understand how they work. The challenge is that many consumers still don’t know these claims exist or what they mean.
A new survey commissioned by disputes firm Hausfeld highlights a significant awareness gap when it comes to opt-out collective actions.
While 62% of respondents said they had heard of collective proceedings, only 34% said they actually understood how they work.
The findings suggest that public support for opt-out claims is strong, but understanding of the system still has some way to go.
What are opt-out claims?
An opt-out collective action is a type of legal claim where one case is brought on behalf of everyone affected, without each individual needing to sign up in advance. If you meet the eligibility criteria, you are included automatically, unless you actively choose to opt out.
That differs from an opt-in claim, where each individual must actively register before they can take part.
Inclusion in an opt-out claim does not mean compensation is automatic. If the claim succeeds or settles, eligible consumers are usually invited to register to receive their share of any compensation.
You can find out more about how opt-outs work in our handy guide.
Support grows once people understand the system
The research, carried out as Scotland considers introducing a broader opt-out collective actions regime, found that support increased significantly once respondents were given a simple explanation of how opt-out claims work.
Among those surveyed:
- 65% supported introducing opt-out collective proceedings
- After learning the difference between opt-in and opt-out claims, support increased to 71%
- 72% said they would stay in an opt-out claim if they were automatically included
- Only 17% said they would definitely sign up if they had to actively opt in to a claim.
- Just 3% said they would opt out if they were automatically included in a claim.
The findings reinforce one of the main reasons opt-out collective actions exist: many people who could benefit from compensation never take part simply because they are unaware of the claim or do not get around to registering.
Why awareness matters
Even where people are automatically included in a collective action, they will often still need to take steps to receive compensation if the claim succeeds or settles. Depending on the case, this may involve registering their details or submitting a claim within a set deadline.
If consumers never hear about the compensation process, they could miss out.
The survey reflects this challenge. Respondents identified consumer rights websites, television news, online media, and recommendations from family and friends as the places they would be most likely to learn about collective actions.
Helping consumers stay informed
The UK has already seen a growing number of opt-out competition claims against major companies, with billions of pounds in compensation being sought.
But these cases can only achieve their full purpose if the people they are intended to help know they exist.
At Join the Claim, we’re working to make opt-out claims easier to understand.
We explain collective actions in plain English, follow important developments and signpost consumers to official claim websites and trusted sources of information.
Because when people don’t know a claim exists, they can’t make informed decisions about whether they may be entitled to compensation.
