The Suggested Safeguards

Suggested
Safeguards

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The EU Collective Actions Directive mandates that Member States have a collective action system in place for consumers to seek redress for breaches of certain EU laws. However, the Directive leaves many of the implementation details up to the Member States’ discretion.

Member States must find an appropriate balance between facilitating just litigation and safeguarding against opportunism. Member States should consider the following recommended safeguards as the minimum necessary for anycollective consumer action, whether domestic or cross-border, and whether inspired by the Directive, or in a pre-existing or subsequent regime.

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

List Of Suggested Safeguards

List Of Suggested Safeguards

‘Domestic’ Qualified Entities should be subject to the same criteria as ‘cross-border’ QEs

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

'Grandfathered' Qualified Entities should also comply with the Directive’s criteria

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Member States should insist on opt-in mechanisms

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

A certification procedure should be put in place

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Public information systems about representative actions should be closely supervised to ensure they are not used to force settlements from defendants

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Contingency fees should be prohibited

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Additional safeguards for third party litigation funding (TPLF) should be considered

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Parties to a collective action should be incentivised to settle

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Punitive damages should be prohibited

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Payments of ‘undistributed damages’ should be prohibited

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Disclosure obligations should proportionate to the needs of the case

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.

Alternative Dispute Resolution (ADR) mechanisms should be at the heart of any domestic regime to provide consumers with redress

To find out more, look at our 12 Recommendations for the Implementation the EU Directive on Representative Actions.