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.
Keywords: class action; legal transplants; litigation funding; mixed jurisdictions; redress for consumers; Representative Actions Directive
