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Financial Services and Consumer redress Unit DG SANCO The Commission‘s initiative on Collective Redress
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The Commission’s package of 11 June 2013 the Communication "Towards a European Framework for Collective Redress" the Recommendation on common principles for injunctive and compensatory collective redress mechanisms in the Member States concerning violations of rights granted under Union Law the proposal for a Directive on Antitrust Damages Actions
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The Communication reports the stakeholders' views in response to the Public Consultation of 2011 presents the Commission position on the main issues of European Union Collective Redress framework
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The Recommendation recommends that all Member States have at national level collective redress mechanisms concerning violations of rights granted under Union Law sets out the common principles that should be followed by national collective redress mechanisms provides for a review clause (2 years for implementation + 2 years for its evaluation)
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Horizontal Approach consumer protection competition environment protection protection of personal data financial services legislation investor protection any other area where collective redress would be relevant
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Broad definitions Injunctive collective redress to stop illegal behaviour Compensatory collective redress in mass harm situation where the breach of rules established at Union level is likely to cause or has caused prejudice to natural and legal persons
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Injunctive collective redress legal mechanism that ensures a possibility to claim cessation of illegal behaviour collectively by two or more natural or legal persons or by an entity entitled to bring a representative action
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Compensatory collective redress legal mechanism that ensures a possibility to claim compensation collectively by two or more natural or legal persons claiming to have been harmed in a mass harm situation or by an entity entitled to bring a representative action
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‘mass harm situation’ a situation where two or more natural or legal persons claim to have suffered harm causing damage resulting from the same illegal activity of one or more natural or legal persons
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Common Principles Measures promoting collective redress Safeguards against abusive litigation
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Promoting collective redress Fairness Adequate information Cross-border cases Effectiveness of the injunctive collective redress Consensual dispute resolution Registry of collective redress actions
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Safeguards Limited standing for representative action Admissibility check ‘Loser pays principle’ General rule of opt-in + opt–out as an exception Conditions for Funding and lawyer’s fees No Punitive damages
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Coordination between public and private enforcement if the proceedings of the public authority are launched after the commencement of the collective redress action, the court should avoid giving a decision which would conflict with a decision contemplated by the public authority
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Practical application of common principles a key role of courts in protecting the rights and interests of all the parties involved in collective redress actions and in managing the collective redress actions effectively
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Next Steps Implementation of the Recommendation by the Member States Assessment by the Commission 4 years' timetable (2 for the implementation+2 for the assessment) EC invites MSs to discuss the current state of national legislative framework on Collective Redress and exchange good practices EC wish to closely monitor the implementation of the Recommendation and intend to organise an event in the beginning of 2014
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More Information on http://ec.europa.eu/consumers/redr ess_cons/collective_redress_en.htm Thank you
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