New EU Class Actions Mechanisms To Be Implemented By Christmas

Background

New laws allowing groups of EU consumers to launch class actions against traders are to be implemented by 25 December 2022 and will apply from June next year. The EU's Representative Actions Directive (EU) 2020/1828 represents a major overhaul of the European class actions landscape, introducing mechanisms for group litigation in every one of the EU's 27 Member States, alongside a new cross-border mechanism for class actions.

The changes are inspired by 'Dieselgate' and a concern that globalisation, e-commerce and new technologies have increased the risk of large numbers of consumers suffering harm.

Overview

The new laws will enable 'qualified entities' (generally, consumer organisations) to bring representative actions in the EU in the collective interests of consumers. They distinguish between two types of representative actions those brought in one Member State, and cross-border actions across multiple Member States.