Collective Redress in the EU: Will It Finally Come True?

Abstract

On 22 June 2020, the European institutions reached a historical deal on a new Directive for representative actions for consumers, which was finally adopted on 25 November 2020 New EU Directive 2020/1828 allows Qualified Entities across the EU to seek compensation on behalf of consumers affected by mass harm situations. Presented by the European Commission in April 2018 as part of its “New Deal for Consumers” package, the Directive intends to strengthen the enforcement of consumer rights and to ensure access to justice when large-scale damage arise. It also gives considerable leeway to the Member States when implementing the new rules into their national legislations. Therefore, the effectiveness of the new EU instrument will strongly depend on the choices made by Member States at national levels. These issues are pivotal to ensure that the new EU collective redress instrument meets its objectives and fully delivers for all harmed individuals.