European Parliament Adopts Collective Actions

30th Nov 2020

After more than two years of negotiations, the European Union has officially adopted its Directive on Representative Actions.

In the final debate on the Directive, Members of the European Parliament (MEPs) applauded the work on this file and made it clear that there will be more EU legislation on collective actions in the near future, and not just for consumers or EU citizens. MEPs are looking towards human rights and environmental collective actions next.

The only MEP to offer a dissension to the outpouring of support for the Directive was Andreas Schwab, who pointed out that the Directive failed to reach its main goal of harmonizing collective redress laws across the EU. MEP Schwab said that, as a result, we will be left with ‘27 different solutions’ to consumer redress.

As MEP Schwab indicates, it will be up to national governments to determine crucial features of their redress system, such as how much lawyers and litigation funders will profit from claims and whether consumers will have the opportunity to consent to be part of a lawsuit.

During the implementation period, Member States must take the opportunity to fix the loopholes and the flaws of the Directive. Thankfully, common sense solutions exist. To find out more, check out ILR’s ‘12 Recommendations for the Implementation of the EU Directive on Representative Actions,’ which can be found here.