Labour

Labour to examine class action proposals for consumer redress

Labour is examining proposals to better empower consumers by introducing a class action framework into the UK, allowing consumers to seek redress collectively.
 
The procedure, which exists elsewhere including Australia and the USA means that consumers are able to launch a claim together. Currently in Britain there are only limited tools for collective redress, including through the consumer group Which? .The recent PIP breast implants scandal highlights the type of case where class action could give greater redress.
 
This will form part of Labour’s Consumers Investigation, being launched today which is looking at ways of putting consumers in the driving seat and ensuring markets work fairly for businesses and consumers alike.
 
It will address concerns raised by high profile cases of consumers getting a raw deal, including PPI misselling, hidden fees on pensions and credit cards, the PIP breast implants scandal, ‘drip pricing’ where prices are not made clear up front and hikes in energy bills.   
 
The review will be led by consumer champion Ed Mayo, formerly Chief Executive of the National Consumer Council who has been described as “the most authoritative voice in the country speaking up for consumers”.
 
The investigation will also look at international best practice and ways of boosting the role of consumer advocacy and advice as well as areas where enforcement has been lacking. It includes an examination of businesses as consumers and how they can be better protected and supported.
 
It builds on Ed Miliband’s call for fairness in tough times and for an end to the surcharge culture of consumer rip offs which are hitting the squeezed middle. Labour will stand up to vested interests to ensure healthy and fair competition, break up cosy cartels and set the rules of the game to supporting responsible business practice and making markets work better for consumers and businesses.
 
The investigation is being launched at Citizens Advice in London by Shadow Business Secretary Chuka Umunna and Shadow Consumer Minister Ian Murray at a seminar on consumer redress. It will inform the Shadow Cabinet working group on Business and Enterprise for Labour's Policy Review. As part of the investigation, Ed Mayo will hold a series of Consumer Hearings across the country.

Chuka Umunna MP, Labour’s Shadow Business Secretary, said:
 
“We need to change the rules of the game to stop business and consumers getting a raw deal.

“Labour’s Consumer Investigation, led by consumer champion Ed Mayo, will look into ways that we can empower consumers, back responsible business, underpin fair markets and end the rip off culture which too often has faced consumers.

“We need a fairer deal for consumers and businesses alike and that’s why I’m delighted that Ed Mayo is leading Labour’s Consumers Investigation. The Tory led government is out of touch with consumers and has failed to stand up to vested interests to protect people from rip offs at a time when family budgets are being squeezed.”
 
Ian Murray MP, Labour’s Shadow Consumer Minister said:

“Too many consumers have been exposed to unfair rip offs but Labour’s Consumer Investigation will look at how consumers can fight back when things go wrong.
 
“Consumer champion Ed Mayo is taking the lead in investigating the con culture which is damaging for both consumers and business. Whilst Labour is working with Ed to look at ways to better stand up for consumers and back responsible business, the Tory-led Government has turned a blind eye to protecting consumer interests.”
 
Consumer Champion Ed Mayo, who will lead the Investigation added:

“The best businesses take the high road and live up to their promises for consumers, but in tough times, many more are doing the opposite - with poor service, new charges and lock-in contracts designed to cut people's choice.   
 
“The Investigation will hold evidence hearings involving key stakeholders across the business and consumer landscape with the aim of looking at the best ways of getting rid of this consumer con culture and to reward the companies who put their customers first.”