Expected at the European Commission on 11 April, the proposal for a directive - on the protection of consumers’ collective interests against undertakings or major online platforms which deliberately infringe upon their rights guaranteed under EU legislation - is also not expected to be revolutionary.
The proposal, which is part of the “New Deal for Consumers”, will nonetheless establish a harmonised European framework which guarantees implementation of the common principles for injunctive and compensatory collective redress mechanisms, as recommended by the Commission in 2013.
“Class action” will by no means be an American-style procedure, the commissioner for justice and consumers, Vera Jourova, recently pointed out (see EUROPE 11980, 11979). This comes as no surprise since the proposal will be based on the recommendation of 11 June 2013 on collective action systems. Further to assessment, the Commission affirmed this was a suitable instrument for attaining the objectives, but that its implementation left much to be desired (see EUROPE 11948). The text in interservice consultation, which leaked to the press, confirms this.
Once adopted, the future directive is called upon to replace Directive 2009/22/EC relating to injunctive actions regarding the protection of consumers’ interests. In addition to infringement to the European law on consumers, it should also cover areas such as financial services, energy, telecommunications, health, and the environment. The draft text does not cite competition law.
The proposal will reinforce possibilities for collective action by European citizens through their representative organisations (“qualified entities”), or before out-of-court dispute settlement bodies, or before the courts. The qualified entities, designated by the member states, should meet minimum reliability criteria.
Penalties to be paid by offending undertakings will be strengthened through an amendment to the directive on unfair trading practices. They will be established by relevant national authorities depending upon the gravity of the infringement. They should comply with minimum criteria established by the recasting of EU legislation on consumers and may go as far as fines of at least 4% of the annual turnover of undertakings for serious infringements of European magnitude (see EUROPE 11987). (Original version in French by Aminata Niang)