redress action

How to ensure that collective redress actions are useful for consumers?

Posted on 05/10/2022 · Posted in News

New rules on redress actions will make it easier for consumers to access justice

Collective redress actions is the legal term for proceedings initiated by consumer associations such as ASUFIN, it is a fundamental right of access to justice. And that is why most EU governments are implementing the new EU law, which will be applicable from May 2023.

Some of the decisions that governments must take are as follows:

Opt in/ Opt out:
In opt in processes is the consumer who decide to be part of the processes. While in Opt out processes all harmed consumers are defended and they will be the ones who will have to expressly opt out.

The cost of collective redress actions currently amounts to hundreds of thousands of euros, which makes impossible for consumer associations to take them to court.

However, these costs could be reduced by setting maximum prices for the amount of the claim or by choosing alternative forms of financing.

BEUC calls on European governments to ensure that they will take the necessary measures to ensure that collective redress actions protect consumers.