Representative actions to protect the collective interests of consumers: A new deal for consumers

25-04-2019

On 11 April 2018, the European Commission published a proposal for a new directive on representative actions for the protection of the collective interests of consumers. Currently, consumer organisations or independent public bodies can bring actions in the name of consumers in courts or before administrative authorities to stop infringements of consumer legislation. According to the proposal, they would be able to demand compensation for consumers as well. While work on the proposal is ongoing in the Council, the European Parliament adopted its first-reading position on 26 March 2019. It added safeguards to protect companies against abusive litigation, and deleted a precondition that consumers should wait for a final injunction order establishing the existence of an infringement before being allowed to demand compensation.

On 11 April 2018, the European Commission published a proposal for a new directive on representative actions for the protection of the collective interests of consumers. Currently, consumer organisations or independent public bodies can bring actions in the name of consumers in courts or before administrative authorities to stop infringements of consumer legislation. According to the proposal, they would be able to demand compensation for consumers as well. While work on the proposal is ongoing in the Council, the European Parliament adopted its first-reading position on 26 March 2019. It added safeguards to protect companies against abusive litigation, and deleted a precondition that consumers should wait for a final injunction order establishing the existence of an infringement before being allowed to demand compensation.