The Retail
Motor Industry Federation (RMIF) has put forward the case for
trade associations to be allowed to lead group actions to the
Office of Fair Trading.
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The federation wants the rules covering such legal actions to be
changed in order to allow trade bodies to spearhead the legal
response to issues affecting their members.
The RMIF said: “At present, a named individual member of a UK
trade body must instigate legal proceedings within a group action,
albeit with the backing and support of other identified members,
and of their trade association.”
Alec Murray, chairman of the RMIF commented: “‘It would greatly
benefit businesses that belong to membership organisations if those
bodies could act on their behalf via Group Class Actions.”
Recently the RMIF urged all the members of its National
Franchised Dealers Association (NFDA) branch to investigate
whether they were eligible for refunds on VAT paid on demonstrator
vehicles, after a House of Lords ruling on the premature payment of
corporation tax (click
here for more details).
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By GlobalDataLouise
Wallis, head of business development at the NFDA said:
“Although it may be possible for individual dealers to take an
action [on VAT refunds] this is likely to be expensive and
difficult.
“It is therefore probable that most dealers will look to take a
Group Litigation Order (GLO) which allows dealers to pool resources
and take a joint case to court.”
