Press Story

British Uber drivers represented in a Dutch lawsuit over allegedly unfair pay highlights barriers to collective action in the UK

Dominic Grieve KC, former attorney general for England and Wales, backs IPPR's call for joined-up legal reforms to help workers and consumers take on tech giants

Think tank warns government’s proposed consumer class action reforms must not leave workers behind

The government must overhaul UK laws to make it easier for workers and consumers to take on powerful technology companies in court, according to a new IPPR report.

The research warns that UK laws reinforce an already stark imbalance of power between ordinary people and tech giants. Restrictions on collective legal action, limits on charities bringing public interest cases and the risk of crippling legal costs leave ordinary people struggling to enforce their rights.

The disparity is highlighted by a Dutch lawsuit involving British Uber drivers over allegedly unfair pay determined by algorithms. While Dutch law allows non-profit organisations to bring collective cases on behalf of affected people with limited risk of legal costs, UK rules make equivalent legal action much harder with the risk of massive legal costs, and require individuals actively join collective claims in most cases.

The case challenges Uber's alleged use of personal data to determine drivers' pay, following previous research findings that its algorithmic pay system has made earnings less predictable and widened pay inequality. Uber disputes the allegations.

But IPPR argues that the barriers facing these driversare part of a much wider problem. The report also highlights consumers subjected to invasive profiling and targeted gambling advertising, as well as the millions of non-consensual sexualised images estimated to have been generated using Elon Musk's Grok AI.

Labour MP Jess Asato is suing Musk's company xAI after sexualised images of her were generated without consent, in a case supported by the Stop AI Abuse campaign. The company is yet to file a defence to the legal action.

IPPR calls for a joined-up package of reforms to help people enforce their rights, including:

Allowing charities and NGOs to bring public interest cases against tech companies without requiring individual authorisation.

Introducing opt-out collective legal action, allowing affected people to be included in group claims unless they choose otherwise, across areas including workers' rights.

Capping potentially crippling legal costs and reforming litigation funding rules to make cases against powerful companies more affordable.

The government is already examining reforms to consumer class actions, in a welcome step towards improving access to justice. IPPR argues that reforms should go further, making it easier for workers and others harmed by technology to take action too. It urges coordinated action across justice, business and technology policy, rather than piecemeal reforms that leave fundamental barriers in place.

Swee Leng Harris, author of the report, said:

“It’s absurd that Uber drivers in the UK are represented in a Dutch lawsuit while UK law makes similar cases much harder.

“From workers’ pay to harmful AI, ordinary people face huge barriers to challenging powerful tech companies. Rights mean little if people cannot enforce them. The government needs joined-up reforms so workers and consumers can hold tech giants accountable.”

Dominic Grieve KC, former attorney general for England and Wales, said:

“The rise of large tech companies raises legitimate concerns about the power they have acquired and the way they use it. Power can be a force for good but without accountability there is a serious risk of the rule of law being undermined.

"In this paper, Swee Leng Harris sets out what might be done to rebalance power in this area to ensure accountability and justice for those wrongly affected by large tech activities. The paper is an important contribution to a needed debate."

Jess Asato, the Labour MP for Lowestoft, said:

“AI tools such as Grok have made it possible to create deepfakes images of real people without their consent at the touch of a button. Grok’s ability to do this is a design choice made by SpaceX Super Intelligence; it is AI designed without the safety of women and children in mind.

“In my case, we contend that those responsible for Grok misused my data and broke UK law. No one is above the law. No matter how rich or powerful they are.”

Abdurzak Hadi, an Uber driver involved in the Dutch legal case and member of the App Drivers and Couriers Union, said:

"It's absurd that we have to go to another country to challenge what we believe is unfair pay. Drivers should be able to fight for their rights here in the UK.

"Taking on a company like Uber in court also costs huge amounts of money, far more than most drivers I know can afford. We deserve justice, but right now it feels like justice is something you have to buy. That needs to change."

ENDS

Swee Leng Harris, independent consultant on legal strategy and tech policy and supervisory board chair of Stichting Worker Info Exchange International, and Sofia Ropek-Hewson, IPPR senior research fellow, are available for interview

Case studies available on request

CONTACT

Rosie Okumbe, senior digital and media officer: 07825 185421 [email protected]

David Wastell, director of news and communications: 07921 403651 [email protected]

NOTES TO EDITORS

The IPPR paper, Empowering people to hold tech accountable by Swee Leng Harris, will be published at 00:01 on Thursday November 5. It will be available for download at: https://www.ippr.org/articles/empowering-people-tech-accountable

The paper is part of IPPR’s National Renewal programme, a major initiative to rethink progressive politics in a time of great change and challenge. Read more about it here https://www.ippr.org/research-and-ideas/our-major-programmes/national-renewal

About the author: Swee Leng Harris is an independent consultant advising on legal strategies and tech policy. She is the chair of the supervisory board of Stichting Worker Info Exchange International, the organisation who filed the collective action legal case on behalf of Uber drivers at the Amsterdam District Court

Advance copies of the report are available under embargo on request

IPPR (the Institute for Public Policy Research) is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the practical ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. As an independent charity working towards a fairer, greener, and more prosperous society, we have spent almost 40 years creating tangible progressive change - turning bold ideas into common sense realities. www.ippr.org