Are Class Actions Finally (Re)conquering Europe? Some Remarks on Directive 2020/1828

Abstract

The article provides a brief overview of the background of the new European Union directive on representative actions for protection of the collective interest of consumers (Directive 2020/1828). It describes the basic elements of the directive and explains the major changes that have occurred since the European Commission issued its Recommendation document on collective redress in 2013. The author highlights the issues of the scope of application of the directive, of legal standing to bring a representative action, of collective settlements, and of the problem of funding for collective actions. This discussion puts emphasis on the need to extend legal standing to individual members of the group and articulates an appeal to national legislatures, particularly in Germany, to be more open-minded towards commercial litigation funding and the establishment of a public access-to-justice fund designed to guarantee the effectiveness of Directive 2020/1828 and its implementation.