Featured News Stories:
- Dutch Government Considers Amendments to WAMCA to Meet the Criteria of the EU Collective Actions Directive (5/12/2022)
- Irish Government Introduces Bill to Implement EU Collective Actions Directive (5/12/2022)
- Director of Dutch Claim Foundation Sentenced to Two Years in Jail for Stealing from Claimants (1/18/2022)
The EU Directive on Collective Actions
The EU Directive on Representative (Collective) Actions was officially adopted by the European Parliament in November 2020. The Directive requires each Member State to establish a collective action system to allow consumers to sue for damages. While the Directive contains some safeguards to prevent abusive litigation, it does not go far enough, and clever profiteers could exploit its loopholes.
Member States now have two years to transpose the Directive into their national laws. National governments will determine crucial features of their country’s redress system, such as how much control third parties, like litigation funders, will have over a claim and whether consumers will have the opportunity to consent to be part of a lawsuit.
This is an opportunity for policymakers to improve the Directive with much-needed safeguards for consumers and businesses. They should take heed of the advice given here, and resist the siren calls of litigation entrepreneurs and speculators.