European Union

The European Commission’s Collective Redress Proposal

Collective redress or ‘class action’ models are proliferating across the European Union (EU), with a vast majority of Member States now having, or about to have, at least one collective redress mechanism available for consumers. 

In addition to this emerging patchwork of national collective redress schemes, the European Commission proposed, in April 2018, as part of its New Deal for Consumers, a Directive on representative actions for the protection of the collective interests of consumers. This proposal would not replace existing national rules on collective redress and would introduce for the first time a set of EU rule son collective or group actions.

This proposal, which is currently pending in reconciliation negotiations was initially issued under the EU “Ordinary Legislative Procedure,” which requires the European Parliament and the Council of the EU (representing the 27 EU member countries) to review, amend and adopt a reconciled version of this proposal.

In a review process that took about a year to complete, the European Parliament adopted an amended Directive proposal in March 2019.  Meanwhile, the Council under Austrian, Finnish, Romanian and Croatian presidencies, adopted in December 2019 its own amended version of this proposal. Both the European Parliament and the Council, together with the participation of the Commission, are now engaged in reconciliation negotiations, known as “trilogue.”  This legislative process is expected to be finalized in 2020. For further information regarding ILR's positions and engagement on this proposal, please consult the Fair Deal for Consumers website