Former Formula 1 boss Max Mosley has complained about the cost of libel litigation when appearing before an inquiry into journalistic ethics.
Mr Mosley told the Leveson Inquiry in London that "probably 1%" of the population could afford to sue.
He told inquiry chairman Lord Justice Leveson that the cost of taking legal action against newspapers was a "major problem".
Mr Mosley was the subject of a News of the World article alleging that he took part in a "sick Nazi orgy".
He was awarded a record £60,000 in privacy damages at the High Court after taking legal action following the March 2008 story, which he denied.
Mr Mosley gave evidence to the Leveson Inquiry in November, when he accused the government of having been "completely in the thrall of" newspaper bosses.
He returned on Wednesday as Lord Justice Leveson analysed options for newspaper regulation.
"It is so expensive, probably 1% of the population can afford it," Mr Mosley told the inquiry. "I think it is completely wrong."
In a written statement to the inquiry, Mr Mosley said a number of "major problems" had to be solved.
"First, litigation for breach of privacy or defamation is beyond the means of all but the richest, be they newspapers or individuals," he said. "Justice is thus denied to most of the population."
He added: "Second, a section of the British press has for many years repeatedly gone well beyond the bounds of civilised behaviour, routinely breaking the law, ignoring rules devised by the newspaper industry itself and adopting a bullying and dishonest approach to litigation."
Mr Mosley said the Press Complaints Commission (PCC) watchdog had not been able to enforce rules - and called for a new regulatory body.
"We need to resolve these problems without in any way restricting public interest and serious investigatory journalism - the freedom of the press," he said in the statement.
"The proposed solution is to create an entirely new body, the Press Tribunal, to mediate and where necessary enforce the rules while keeping the existing rule-making body, the PCC, albeit in modified form, as the Press Commission.
"Even if the current PCC were given power to enforce its own rules, this would be unsatisfactory. It would mean the newspapers continuing to sit in judgment on themselves. The experience of the past 60 years has shown this does not work.
"However, it would be unrealistic to have a rule-making body without input from the newspaper industry.
"With a new independent body to apply the rules, the newspaper industry could continue to be broadly responsible for the standards which govern its conduct in the UK. This would eliminate any suggestion of state control."
Mr Mosley told the inquiry today that journalists should be involved in making regulation rules.
He added: "I think it is very important that the press play a major role in making the rules."
The inquiry continues.