Public scepticism about class actions still high in the UK, survey reports

Large sections of the UK public continue to regard class actions as an unwelcome import whose main beneficiaries are likely to be lawyers and litigation funders, according to a regular opinion survey.

According to communications company Portland’s third Class Action Report, enthusiasm for group claims is growing, with 60% of respondents saying they would be likely to join such an action if they were directly affected; 55% said they would join even if the defendant was their employer. Two thirds (67%) would join a class action against a business accused of causing environmental damage affecting them. Energy and finance top the list of industries where the public would support a class action. 

However according to the report, the UK public’s awareness of class actions remains low: 20% of respondents said they had ‘high’ awareness; half the figure in the US. The UK public also have lower expectations on the ability of class actions to secure compensation (44%) and hold large organisations to account (43%).

Class actions 'continue to carry a degree of reputational risk as a "US import" into the English legal system,' the report observes, with only one third of respondents believing this to be a good thing.

Meanwhile 'a majority of the public still believes that lawyers and litigation funders are the main beneficiaries of class actions’. The perception that funders take a ‘large percentage’ of any compensation would deter 24 of UK respondents from signing up; 21% would consider opting out of a claim because of this issue. 

'It is important for litigation funders to address these topics directly with class members in order to mitigate concerns that could undermine their legal and investment strategies,' Portland comments. 

Philip Hall, head of Portland’s litigation and disputes practice said: 'Since our inaugural report in 2020, we have witnessed an exponential rise in class actions across the globe and a marked shift in the public’s attitudes towards group litigation, with European class actions up 120% between 2018 and 2021.'