Consumer protection — representative act

Service Description

SUMMARY OF: Directive (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC WHAT IS THE AIM OF THE DIRECTIVE? It empowers organisations or public bodies designated by EU countries to seek injunctive or redress measures on behalf of groups of consumers through representative actions (including cross-border representative actions). This includes seeking compensation from traders who infringe consumer rights in areas such as financial services, travel and tourism, energy, health, telecommunications and data protection, as appropriate and available under EU or national law. Since both judicial and administrative procedures may effectively and efficiently serve the protection of the collective interests of consumers, it is left to EU countries’ discretion as to whether the representative action can be brought in judicial or administrative proceedings, or both, depending on the relevant area of law or relevant economic sector. KEY POINTS Qualified entities EU countries designate the entities that will be enabled to bring representative actions on behalf of consumers (qualified entities). In order to be enabled to bring the representative actions in an EU country other than the one of their designation (cross-border actions), the qualified entities must: be able to demonstrate 12 months of actual public activity in consumer protection; be non-profit-making; demonstrate its statutory purpose of having a legitimate interest in protecting consumers; not be the subject of insolvency proceedings and not be declared insolvent; be independent and not influenced by persons other than consumers, in particular market operators, including financially; have an established procedure to prevent such influence and conflicts of interest; disclose publicly how it is financed; disclose its organisational and management structure, objectives, working methods and activities. EU countries may also apply the abovementioned obligations to the qualified entities designated in advance and enabled to bring domestic actions (in the EU country of their designation). EU countries may also designate qualified entities on an ad hoc basis for the purpose of bringing a particular domestic representative action. The European Commission publishes the list of qualified entities de Book, Corporate, Radio, Television, Podcast Interviews for CPD/CE credit. Book Public Opinion for your say on Radio or Television.

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