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Collective proceedings legislation

The Times recently reported that a section of the business lobby described the approval of the Collective Proceedings Act as a “sad day for business”. I beg to differ.

In substance, this law introduces a long, overdue measure albeit at present limited to certain consumer or competition laws, whereby persons having a similar cause of action relating to similar facts can collectively make a single action. The benefit of such a procedure is obvious because it minimises the need to initiate different lawsuits relating to similar issues, once aggrieved persons can collectively file a single action.

It is also relevant to note that such legislation has been on the statute books of various countries for quite some time. Within the confines of the EU, at least 15 member states have enacted similar laws while legislative measures are being discussed in another two. If anything, I augur that the powers that be in the not too distant future consider extending the applicability of such a law to other areas.

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