Class Action in the EU: Lessons From Mixed Jurisdictions

Abstract

Class actions enable consumers to take collective action against

wrongdoing by businesses, which individual consumers may not find affordable

or worthwhile. One of the drivers of the success of class actions has been

the availability of funding to litigants. Along with these benefits come risks of

abuse of the legal process. This article discusses how mixed jurisdictions have

selectively adapted the uniquely American model of class action to suit their

own circumstances. It argues that this experience is instructive for Member

States of the European Union (EU) when they legislate to put in place a representative

regime compatible with the EU’s Representative Action Directive.

Notably, the EU has retained the right to institute class actions in the hands of

independent bodies rather than affected consumers, aiming to mitigate potential

abuses and ensure a more balanced approach to collective redress. The

article highlights the principal differences between the American model and

the model the EU has adopted, focusing on the perceived role of the state and

private initiatives in consumer protection, the nature of compensation that

consumers could receive, how class actions are funded by the state or private

agencies, and the role of the judge in legal proceedings.