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

20-07-2020

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. The co-legislators reached a provisional agreement on the proposal on 22 June 2020, which now needs to be cofnirmed by both institutions. According to the agreement, Member States would decide themselves the criteria for the designation of qualified entities for domestic actions, while the criteria for cross-border actions would be common across the whole of the EU. A loser-pays principle would be introduced, requiring the defeated party to pay the costs of the proceedings for the successful party. The Commission would be required to evaluate, within five years, whether a European ombudsman for collective redress for consumers is necessary. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

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. The co-legislators reached a provisional agreement on the proposal on 22 June 2020, which now needs to be cofnirmed by both institutions. According to the agreement, Member States would decide themselves the criteria for the designation of qualified entities for domestic actions, while the criteria for cross-border actions would be common across the whole of the EU. A loser-pays principle would be introduced, requiring the defeated party to pay the costs of the proceedings for the successful party. The Commission would be required to evaluate, within five years, whether a European ombudsman for collective redress for consumers is necessary. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.