Collective Redress: Representative and Class Actions (Recommendation)
The Commission recommends that the Member States introduce collective actions. Collective actions refers to actions brought by two or more affected parties or by an authority or entity on their behalf. Collective actions should facilitate the enforcement of legal rights, particularly where individual actions are too costly for affected parties.
Collective actions allow legitimate claims to be brought more easily. The Commission is trying to achieve a balance between protecting the interests of potential claimants and the need for both companies and society as a whole to prevent abusive litigation. However, the option for Member States to use the opt-out principle for reasons of “sound administration of justice” gives rise to legal uncertainty. The recommended binding effect upon the courts of decisions by authorities results in a curtailment of the legal process if affected parties can’t take action against the decisions of authorities.