Clause 17 - Claims on behalf of consumers
Enterprise Bill
4:00 pm
Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)
On a point of information, Mr. Conway. A letter being circulated to you, to Mr. Beard and to all members of the Committee is now available on the Table. It explains an amendment to part 8 and a consequential amendment and it also provides the lists requested earlier about domestic and community infringements under clause 203. The information is available in good time for future debate.
To return to matters in hand, I was asked why we were going down this particular route. I hope that I have already explained it to some extent, but I highlight what the hon. Member for Twickenham said about the importance of advocacy generally and its successful use on behalf of consumers.
The actions in the clause are not exactly the same as US class actions. One of the important differences is that class actions are allowed in the US on behalf of an amorphous and unnamed group of individuals, but consumer claims for damages will be allowed here only on behalf of named, identified consumers—a significant difference—and only with their consent. US class actions are brought in the ordinary courts, but here they will be brought before the CAT only following a decision of the OFT or the European Commission that established a breach of competition law.
These are clearly targeted measures, which exist to help the victims of anti-competitive behaviour. As several hon. Members have explained, it can be difficult for victims to bring effective damages action themselves, so we have every reason to put the new measure in place. It will strengthen the hand of consumers who have been damaged in the ways described.
In response to Conservative Members' other comments, I am as puzzled as the hon. Member for Twickenham about the strength of the CBI's feelings. Its concerns are greatly overstated. Damages will be calculated in line with principles used in the courts. The competition and related expertise of members of the CAT will enable them to assess damage caused by anti-competitive activity much more effectively than other courts. Nine members already have significant legal experience and the chairman has already presided over courts at high level. The Bill allows the appointment of members with competition or any other relevant legal expertise, so we expect the tribunals to be appropriately provided for in expertise terms. However, the basis of decisions about the appropriate level of damages will not fall outside the principles used in other courts.
In the light of what I have said about the designation process and my further reassurance that claims cannot be brought by bodies engaged in ambulance chasing or other vexatious activity, but only at the end of process through which damage to consumers will have been confirmed, I hope that Opposition Members will understand why the clause should stand part of the Bill.
Question put and agreed to.
Clause 17 ordered to stand part of the Bill.