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Class action
A class action (or class-action lawsuit) is a type of civil lawsuit that allows a group of individuals (the "class") to make a unified, collective civil case against an entity[1]. Rule 23 of the Federal Rules of Civil Procedure permits one or more parties to "sue or be sued as representative parties on behalf" of all those similarly situated[2].
When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation[1].
Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries.
Importance for consumer rights
Class actions are of particular importance for upholding consumer rights, as they allow claimants to receive justice when it would be too costly and time-consuming for individuals to separately seek justice on a widespread issue.
Obstacles
Forced arbitration
Forced arbitration clauses can restrict individuals from participating in class actions.
