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ARTICLE · 10 JULY 2020

EU Representative Actions: Do They Represent A Major Consumer Rights Shakeup?

We consider the implications of a new EU Directive to introduce representative actions for breaches of certain EU laws, including consumer rights, product liability and product safety legislation.

United StatesConsumer Protection

We consider the implications of a new EU Directive to introduce representative actions for breaches of certain EU laws, including consumer rights, product liability and product safety legislation.

After months of negotiations, the European Parliament, the European Council and the European Commission reached a compromise agreement on the content of a new Directive on consumer collective redress last week, which was approved by the Legal Affairs Committee on Tuesday. These reforms were originally proposed by the Commission as part of its "New Deal for Consumers", but there are significant differences in the final text. We take a look at the agreement in detail below.

Overview

The new Directive will enable "qualified entities" (generally consumer organisations) to bring representative actions in the EU in the collective interests of consumers. It distinguishes between two types of representative actions – those brought in one Member State, and cross-border actions

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