From Sunday 25 June, EU Directive 2020/1828 creating a European right of collective redress for consumers harmed by the same illegal practices of large companies, regardless of the Member State where these infringements of EU law are committed, will apply throughout the EU.
Born out of ‘dieselgate’, this directive establishes collective redress procedures initiated by qualified entities representing consumers deliberately harmed by the unfair practices of a single company infringing European law in numerous areas, including data protection, financial services, travel, tourism, energy and telecommunications (see EUROPE 12608/3).
Consumers who have been cheated will be able to collectively claim compensation, replacement or repair.
To promote the smooth functioning of representative actions in the EU, the Commission has launched ‘EC-REACT’ - an online platform through which Member State representatives, judges and designated qualified entities can cooperate.
“Consumers now have the possibility to join forces in single, EU-wide, collective actions to ensure that all businesses, including the largest ones, respect their rights”, welcomed the European Commissioner for Justice, Didier Reynders, in a press release.
The European Consumers Organisation (BEUC) has hailed this as a significant improvement after “30 years of campaigning”, while pointing out that a large number of Member States have not yet transposed the directive.
Link to EC-REACT: https://aeur.eu/f/7nz (Original version in French by Aminata Niang)