About the Directive

The new representative actions Directive (EU Directive 2020/1828) entered into force on December 24, 2020. EU member states were given 24 months to transfer the Directive into national law, and six months to implement it. The new rules will apply to representative actions that were filed on or after the Directive’s date of application.

We provide an overview of the status of implementation of the Directive across major EU jurisdictions as at 1 February 2023, including the current collective litigation mechanisms in place in these jurisdictions. In jurisdictions where class actions are not permissible, we also outline examples of other major group litigation cases.

At the bottom of this page, you can also find contact details of the main representative members of the DWF Class Actions team across Europe. Should you wish to discuss your strategy in preparation for future class actions under the new EU Directive, please don't hesitate to reach out to one of our colleagues.

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The Directive: An Overview

The Directive is designed to protect the collective interests of consumers by establishing effective procedures for member states to ensure that qualified entities can bring collective actions on behalf of consumers.

Scope

Scope

The Directive will enable qualified entities to bring representative actions, for both injunctive (requiring the infringing conduct to be stopped or prohibited) and redress measures (such as compensation, repair or price reduction), against traders who are infringing the provisions of Union law. The Directive includes both an opt-in and opt-out system.
Why is this important?

Why is this important?

The Directive provides consumers with an alternative to pursuing costly, lengthy individual legal proceedings, by way of an efficient method to obtain collective redress. The existence of such a mechanism is likely to lead to an increase in such class actions being run.
Qualified entities

Qualified entities

The organisations which can represent consumers must be Qualified Entities, which will generally be consumer organisations or public authorities. The member state will designate at least one local qualified entity, based upon criteria relating to transparency, non-profit-making qualities, and permanence.
Redress and remedies

Redress and remedies

The representative action which can be brought will not have the limitations of declaratory relief only. Consumer bodies representing the interst of the group of consumers will be able to seek injunctions, and remedial measures such as compensation, repair or termination of the contract
Opt in or Opt out

Opt in or Opt out

The Directive provides for both an opt-in and an opt-out system.

It should be noted however that consumers living outside the member state in which an action is brought would only become part of the represented group by opting in.
Loser pays

Loser pays

The unsuccessful party will bear the costs of the action (although individual consumers will not be required to pay the costs except in exceptional circumstances)
External funding

External funding

The use of third party funding is restricted, but not prohibited, providing national law allows it.