The launch of the Fraser of Allander Institute report, The Economic Impact of Mass Litigation in Scotland, is a timely contribution to an important debate.
The report brings forward evidence suggesting that opt-out mechanisms can lead to increased litigation and costs, estimating that the economic impact on Scottish businesses could be significant.
It also reinforces the importance of getting the balance right and the opportunity for Scotland to deliver meaningful redress outside of the courtroom.
Rather than introducing a radical class action system, Scotland should be asking how we can and should strengthen the entire consumer redress system.
Seema Kennedy, Executive Director of Fair Civil Justice, commented:
“Fair Civil Justice welcomes this report. The evidence it presents is a vital contribution to this important discussion. Any reforms need to genuinely serve consumers – rather than create an environment for even more litigation.
“There is the opportunity for Scotland to develop an improved consumer redress system focussed on speed, fairness and efficiency. By bringing forward a balanced approach we can better protect consumers and continue to support economic growth.”
Rather than introducing a radical class action system, Scotland should be asking how we can and should strengthen the entire consumer redress system. This means exploring opportunities to:
- Regulate litigation funders
- Introduce further ombudsman services
- Put the consumer at the centre of the process, rather than the lawyers and litigation funders
- Prioritise redress outside of the court system
