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Consumer Protection: EU Directive on the Protection of Consumers’ Collective Interests Entered into Application
Wednesday, August 2, 2023

On 25 June 2023, Directive (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers (EU Representative Actions Directive) entered into force. This directive repeals the Directive 2009/22/EC on injunctions for the protection of consumers’ interests (the Injunctions Directive), and it concerns the possibility for consumers to claim their rights through collective actions. The Injunctions Directive will continue to apply to representative actions brought by the qualified entities before 25 June 2023, as foreseen by article 22(2) of the EU Representative Actions Directive.

In fact, the EU Representation Actions Directive sets out rules to ensure that a representative action mechanism for the protection of the consumers’ collective interests is available in the EU member states. Representative actions are actions brought by qualified entities (i.e., a consumer organization, a public body or any other organisation designated by Member States as qualified to bring representative actions), who acts as a claimant, before national courts or administrative authorities on behalf of groups of consumers against infringements by traders of EU law provisions referred to in Annex I of the EU Representation Actions Directive. Through these actions, qualified entities can seek injunctive measures (similarly to what was previously provided by the Injunctions Directive), or redress measures (such as refund, replacement, and repair), or both injunctive and redress measures. Individual consumers concerned by a representative action are not claimants but should be entitled to benefit from that action. In order for a qualified entity to seek an injunctive measure, individual consumers are not required to express their wish to be represented by that qualified entity. While, in case of redress measures, the Directive provides that Member States should establish whether their regime should operate on an opt-out or opt-in basis or a combination of the two. 

This directive aims to protect consumers’ collective interests in several areas such as data protection, financial services, travel and tourism, energy, and telecommunications. However, EU member states may decide to apply the mechanism to other areas of law. 

These actions can be brought at national or cross-border level (i.e., in an EU member state different from the one in which the qualified entity has been appointed). Representative consumers’ entities from different EU member states may also jointly bring a single representative action. 

Lastly, the Commission has decided to set up the Representative Actions Collaboration Tool, an electronic collaboration tool, “EC-REACT,” to facilitate the exchange of information across the European Union on representative actions between EU member state representatives, judges, and designated qualified entities.

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