Czech Class Actions Series – Introduction

Class Actions Act in force: a game-changer in consumer claims enforcement against businesses in the Czech Republic?

The Czech Class Actions Act implementing the EU Directive on representative actions will likely come into effect on 1 July 2024. The draft law was signed by the President of the Czech Republic on 7 June 2024, only a couple of days before this article was written and is yet to be published in the Collection of Laws. Nevertheless, its final wording is already clear.

This long-awaited legislation will enable the collective enforcement of consumer claims against businesses, which has been very limited in the Czech Republic so far. This brings risks, especially for businesses with a larger number of consumers in the financial services, insurance, energy and telecommunications sectors. Surprisingly, besides consumers, the final wording of the Czech Class Actions Act also brings small businesses into play as claimants.