Abstract

In April 2018, the European Commission introduced a long awaited Proposal for a Directive on represented actions, which aims to modernize the existing European collective redress system. The aim of this paper is to answer the question whether the solutions put forward in this Proposal will improve the landscape of collective redress in the EU. For this purpose, I analyse the existing model of collective consumer redress in the EU, as set forth by Directive 98/27/EC, Directive 2009/22/ EC and Recommendation 2013/396/EU; I also evaluate it from the perspective of its functionality with special consideration of key problematic issues. Against this background, I present the legal provisions put forward in the Proposal for a Directive on representative actions. The comparison of both legal structures makes it possible to give an answer to the question whether the proposed legislation can remedy the existing problems of the collective redress system and, thus, to answer the question whether it will contribute to strengthening the mechanism for the protection of collective consumer interests in the EU.

Highlights

  • In April 2018, the European Commission introduced a long awaited Proposal for a Directive on represented actions, which aims to modernize the existing European collective redress system

  • I analyse the existing model of collective consumer redress in the EU, as set forth by Directive 98/27/EC, Directive 2009/22/ EC and Recommendation 2013/396/EU; I evaluate it from the perspective of its functionality with special consideration of key problematic issues

  • I present the legal provisions put forward in the Proposal for a Directive on representative actions. The comparison of both legal structures makes it possible to give an answer to the question whether the proposed legislation can remedy the existing problems of the collective redress system and, to answer the question whether it will contribute to strengthening the mechanism for the protection of collective consumer interests in the EU

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Summary

Introductory remarks

Collective redress is a an umbrella term which covers a wide range of procedural mechanisms tailored for collective enforcement of consumer law. These mechanisms are very diverse – collective redress models and types differ significantly worldwide – they serve the same purpose, namely to enable a great number of claimants to seek redress.. Different procedural mechanisms than the U.S class action style, namely on representative and group actions.4 It is worth noting, that apart from the above mentioned major forms of collective redress in general, there are many other procedural mechanisms at the national level, which make it possible to deliver collective redress in EU Member States. Being aware of that fact on one hand, and noting the advantages and weaknesses of collective redress on the other, the European Commission started to work on a framework for collective redress at the EU level

Different routes to developing the legislative framework for collective consumer redress in the EU
13 Compare
Model for the protection of collective consumer interests in the EU provided in Directive 2009/22/EC
Weaknesses of the existing model
Limited application of the cross-border actions for an injunction
Limited spectrum of legal remedies
Change for the better? Proposal for a Directive on representative actions
Cross-border representative actions
Legal costs and financing the qualified entities
Duration of the proceedings
Extended scope of application
Literature

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