Representative Actions for the Protection of the Collective Interests of Consumers Act 2023
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Funding of representative actions for redress measures | ||
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27. (1) Where a representative action for redress measures brought in accordance with section 26 is funded by a third party, insofar as permitted in accordance with law, the Court shall ensure, having regard to the matters referred to in subsection (2), that conflicts of interests are prevented and that funding by third parties who have an economic interest in the bringing or the outcome of the representative action for redress measures does not operate to divert the representative action from the protection of the collective interests of consumers. | ||
(2) For the purposes of subsection (1), the Court shall in particular ensure that— | ||
(a) the decisions of qualified entities for the purposes of a representative action, including decisions on settlement, are not unduly influenced by a third party in a manner that would be detrimental to the collective interests of the consumers represented by the representative action, and | ||
(b) the representative action is not brought against a defendant who is a competitor of the funding provider or a defendant on whom the funding provider is dependent. | ||
(3) A qualified entity bringing a representative action for redress measures in accordance with section 26 shall disclose to the Court a financial overview that specifies the sources of funds used by it to support the representative action. | ||
(4) The Court shall assess the matters specified in subsections (2) and (3) in cases where any justified doubts arise with respect to such compliance, regardless of whether a party to the proceedings has raised an issue in relation to such compliance. | ||
(5) Where any justified doubts arise in an assessment by the Court in accordance with subsection (4), the Court may in the case of redress measures— | ||
(a) require the qualified entity to refuse, or make changes in respect of, the sources of particular funding, or | ||
(b) if appropriate, refuse the application of the qualified entity to bring the representative action in accordance with section 19 . | ||
(6) Where the application by the qualified entity concerned has been refused by the Court under subsection (5)(b), that refusal shall not affect the rights of the consumers represented by that representative action to pursue other remedies. |