Consumer Scotland has recommended a series of stronger safeguards to ensure transparency, fairness and effective consumer participation.

The Scottish Civil Justice Council (SCJC) is currently considering extending existing group proceedings rules – introduced in 2020 on an opt‐in basis – to allow opt‐out actions where all eligible individuals are automatically included in a claim unless they choose otherwise.

There have been concerns opt-out proceedings could lead to the development of a predatory claims culture which benefits unregulated litigation funders rather than consumers – as well as concern from business that increased claims could place burdens on companies and deter inward investment.

However, Consumer Scotland has said the move will make it easier for groups of consumers to pursue legal action rather than acting individually which can be complex and expensive.

To ensure the proposals deliver real benefits for consumers, Consumer Scotland has made a number of recommendations including:

• clear and accessible information for affected consumers;
• simple claims processes designed to be easily understood by consumers, and which minimise barriers to participation;
• a strong oversight role for the courts in ensuring the fairness of settlements, expenses and damages; and
• protection against financial liability for individual group members who may not be aware they are part of proceedings.

Head of consumer markets for Consumer Scotland Tracey Reilly said: “Opt‐out group proceedings have the potential to significantly improve consumer access to justice in Scotland.

“However, the success of any new system will depend on strong safeguards that ensure clarity, fairness and transparency for consumers.

“We want to see clear guidance on how parties should act to identify potential group members, publicise proceedings and ensure fair and efficient distribution of damages to the consumers affected.”