Mechanisms for Consumer Collective Redress (Green Paper)
Regarding mass claim cases the Commission wants to open up the possibilities of collective redress for damages claims or develop existing possibilities. To this end, in its Green Paper it presents different options to address the issue which have an effect on cross-border cases as well as purely national ones. It further considers to introduce standardised judicial procedures for collective redress.
The introduction of collective mechanisms increases the propability of unmeritorious claims being asserted. In particular, "opt-out" group action or representative actions encouraged through public financing might lead to over-deterrence effects in the behaviour of companies. Whether or not standardised collective redress mechanisms are necessary for the functioning of the EU single market is questionable.