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Directive on Representative Actions

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Political discussion on European class actions has reached an agreement. The proposal for a Directive of the European Parliament and of the Council on representative actions for the protection of the collective interests of consumers, and repealing Directive 2009/22/EC can be found here. Proposal’s main theme is introduction of European class actions aptly called representative actions. Representative actions allow consumers’ agent to apply for damages regarding a breach of consumers rights. While the extent of representative actions applicability is fairly wide, newly including data protections, telecommunications, financial services and other, the plaintiff will be limited to a qualified entity only, to mitigate the possibility of abuse. Qualified entity shall be a non-profit organization with transparent financing existing at least 12 months prior to the action. The proposal assumes a minimal harmonization regime and as such it will be interesting to monitor the member’s state approach.