Companies would for the first time face the prospect of huge US-style consumer damages claims if radical plans floated yesterday are adopted by the -government.

The proposals from the Civil Justice Council - a public body that makes proposals to modernise laws - could open the way to mass "class action" lawsuits in which millions of people claim billions from businesses accused of wrongdoing, ranging from price-fixing to selling dangerous drugs. The plans are a big victory for consumer groups that claim existing laws stifle the public's rights by making it all but impossible for lawyers to assemble big groups of claimants and win large payouts.