Currently, passengers must spend 11 nights in hotels after returning from red list countries, regardless of vaccination and Covid test status.
London-based firm PGMBM described the regulation as an "unlawful deprivation of liberty" which "violates fundamental human rights".
Whilst acknowledging the importance of safeguarding public health, the firm argued that "forcibly detaining" fully vaccinated people returning to the UK from red list countries is "unlawful".
On Thursday (12 August), the cost of staying in a quarantine hotel jumped from £1,750 to £2,285.
The legal team are seeking compensation for anyone who has been double jabbed in the UK and has had to stay at a quarantine hotel.
In addition to compensation for the "breach in human rights", PGMBM is also seeking refunds of the cost of the quarantine hotel stays.
Tom Goodhead, managing partner of PGMBM, said mandatory hotel quarantine had led to the "false imprisonment" of people who are fully vaccinated and had tested negative.
"Prisoners are entitled to more liberty than those forced to quarantine in hotels," he added.
"We have all read about the horrific experiences of some of the people in these hotels. We want to see this draconian policy scrapped and those affected to be properly compensated."