EC Collective Redress Directive


On Jun. 30, EC welcomed directive to raise collective redress.


  • EC welcomed provisional agreement to strengthen collective redress used in the EU.
  • EU CNCL endorsed a provisional agreement on EU-wide rules for the protection of collective interest of consumers recently concluded with the European Parliament.
  • Step towards empowering consumers, create level-playing field for collective redress.
  • Draft directive on representative actions for protection of collective consumer interests.
  • Follows EP Dec. 2019 approved rules on collective consumer redress, see #50399.
  • Collective Redress Directive
  • Once formally adopted by European Parliament, the legislation will make collective redress available across the EU and will cover a broad range of areas.
  • From financial services to passenger rights, from telecommunications to energy.
  • Will provide for efficient cross-border collective redress actions between Member States, include numerous safeguards to prevent the procedure from being abused.
  • Strict transparency obligations for qualified entities representing consumers regarding source of their funding, including funds used to launch a specific collective action.
  • Currently, not all Member States have a collective redress mechanism available, and proceedings can be lengthy and costly, especially if victims go to court individually.
  • Public authorities not always in position to tackle harmful commercial practices effectively in the EU, new rules will guarantee greater protection for consumer rights.
  • Next Steps
  • On the basis of agreed text and after legal linguistic scrutiny, Council will adopt its position at first reading, European Parliament will then approve Council’s position.
  • At that stage, the directive will be deemed to have been adopted.

Regulators EU CMSN
Entity Types B/D; Bank; CNSM; Corp; Exch; IA; Ins
Reference PR 6/30/2020; DIR 2019/2161
Functions Complaints; Compliance; Financial; Legal; Operations; Treasury
Countries European Union
Products Banking; Corporate; Fund Mgt; Insurance; Securities
Regions EMEA
Rule Type Guidance
Rule Date 6/30/2020
Effective Date 6/30/2020
Rule Id 80887
Linked to
Reg. Last Update 6/30/2020
Report Section EU

Last substantive update on 07/01/2020