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Consumer collective redress in the EU : The Loch Ness Monster ? Monique Goyens Director-General

Consumer collective redress in the EU : The Loch Ness Monster ? Monique Goyens Director-General. Presidency conference Vilnius – 4 October 2013. Why collective redress?. No need to repeat because all participants in this room know why collective redress is needed The consumer tool box.

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Consumer collective redress in the EU : The Loch Ness Monster ? Monique Goyens Director-General

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  1. Consumer collective redress in the EU : The Loch Ness Monster ? Monique Goyens Director-General Presidency conference Vilnius – 4 October 2013

  2. Why collective redress? • No need to repeat because all participants in this room know why collective redress is needed • The consumer tool box

  3. Massive divergencies in Member States • 16 Member States have some sort of a system in their legislation • Various drafts under discussion in a number of Member States • All systems differ • Consumers do not enjoy the same possibilities to claim redress in the Single Market • Even though it is often the same infringement that is the cause of complaints in different countries • Single Market does not work in such cross-border disputes

  4. European debate • Studies carried out by SANCO and COMP, Green papers and White papers, the draft proposal on private damages in 2009, … • Public consultation - Towards a coherent European approach to collective redress in 2011: More than 300 contributions from different stakeholders and more than 18 000 letters from citizens • In 2012 : favourable signals in European Parliament report

  5. BEUC position • A binding EU instrument to ensure that a judicial group action mechanism exists in all Member States for both national and cross-border actions

  6. Our main demands • Applicable to all consumer issues • Aim at obtaining compensation • Allow for standing of consumer or user associations • Cover national and cross border cases • Give the court an active role • Foresee both opt-out and opt-in procedures • Foresee efficient funding mechanisms

  7. Why businesses fear it • Drastic increase in litigation • Opt-out – aggregate damages, while with opt-in compensate just part of the victims • US class actions ‘imported’ into Europe • Blackmail settlements • Bankruptcies No evidence of this in MS where collective redress is in place

  8. Effective safeguards • Active role of the court: evaluation of merits and of standing, control of notification of individuals, approval of settlement, approval of lawyer fees if allowed,… • Loser pays • No punitive damages, no wide discovery, no juries (but specialised judges instead) • Most of these principles already enshrined in civil procedures, so inherent to European legal traditions • Abuses in the US are being tackled. CR also in Canada, Australia, contemplated by Japan etc…

  9. Hope for consumers? • Commission recommendation of 2013 – up to Member States to act now • Double disappointment : much ado about so little • Non binding EU instrument • Opt in approach

  10. www.beuc.eu – consumers@beuc.eu

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