The Department for Business and Trade has proposed targeted reforms to funding, certification and costs in Competition Appeal Tribunal collective proceedings.
The consultation, published on 17 July 2026, seeks to make opt-out claims, regulatory appeals and competition enforcement faster and simpler. The regime was introduced by the Consumer Rights Act 2015 and allows a representative to bring competition claims on behalf of a class without every eligible claimant actively joining the proceedings.
The government considered extending opt-out proceedings beyond competition law or restricting them to follow-on claims based on a regulator’s infringement decision. It has chosen neither course at this stage, although the Law Commission is examining the benefits and risks of a broader consumer class action regime.
Proposed changes would require the Competition Appeal Tribunal to indicate at certification whether a funder’s proposed return and order of payment appeared reasonable. A new presumption would provide for funders to receive their return when a damages award is ordered or a settlement sum is approved, without waiting for distribution to finish. The tribunal would retain discretion where that approach could produce an unjust result.
The Department for Business and Trade is also seeking views on allowing damages-based agreements for opt-out collective claims. Such agreements are not currently permitted within the regime.
Other proposals concern settlement, costs and the distribution of damages. The consultation asks whether a new form of settlement offer should carry automatic costs consequences and whether sanctions should apply to conduct that unreasonably increases costs. It also considers introducing tribunal fees linked to claim value.
On undistributed damages, the government is seeking views on whether the recipient should remain the Access to Justice Foundation, change to the Consumers’ Association, commonly known as Which?, or be divided between them.
The package follows a 2025 call for evidence that attracted around 100 responses from class representatives, businesses, funders, academics and legal practitioners. It also addresses the relationship between private actions and enforcement by the Competition and Markets Authority and European Commission, including the possible effect of follow-on damages claims on regulatory leniency programmes.
The Civil Justice Council published its Review of Litigation Funding in 2025. The Ministry of Justice is considering its wider recommendations, while the present consultation deals specifically with funding in Competition Appeal Tribunal proceedings.
Solicitors and barristers representing class representatives, litigation funders and defendants before the Competition Appeal Tribunal will need to consider how the proposed certification test and scrutiny of funding arrangements could affect case strategy.
In-house counsel should assess the risk of collective proceedings following a Competition and Markets Authority finding or a relevant European Commission infringement decision, as well as the possible costs consequences of rejecting a formal settlement offer.
The consultation closes on 25 September 2026. Law firms advising on collective actions should review existing funding agreements and certification evidence, particularly where funder returns, proportionality and the likely recovery for class members could face closer examination.