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

20-01-2020

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 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. The Council adopted its general approach on 28 November 2019 and proposed to distinguish between domestic and cross-border representative actions. Member States would decide the criteria for designation of qualified entities for domestic actions by themselves, while the criteria for cross-border actions would be common across the whole of the EU. Second 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 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. The Council adopted its general approach on 28 November 2019 and proposed to distinguish between domestic and cross-border representative actions. Member States would decide the criteria for designation of qualified entities for domestic actions by themselves, while the criteria for cross-border actions would be common across the whole of the EU. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.