Scandals like the Dieselgate and Cambridge Analytica have made it clear that until today the enforcement of consumer rights in Europe is still inadequate. In most of the EU member states, Austria amongst, many deficiencies exist regarding the enforcement of representative action claims against foreign companys as well as regarding minor damages.

The proposal for a “Directive on representative actions for the protection of the collective interests of consumers” is therefore a much needed step forward for the protection of European consumers. Through this legal act it can be ensured that in the future consumers are granted effective legal protection through representative action.

For the forthcoming trilogue negotiations, Austrian Chamber of Labour sees the following points as essential to ensure that this new instrument can be used efficiently in practice:

• Clarification of minimum harmonisation
• Declaratory action for ceased infringements required
• Special rules concerning jurisdiction and applicable law for qualified entities
• Maintenance of the status as qualified entity for those institutions already qualified as such under the Directive on the injunctions for the protection of consumers’ interests
• No ban on third-party funding
• Ensuring the removal of all effects of the infringement through redress action
• Clear right to choose by member states between opt-in and opt-out in case of redress actions
• Maintenance of redress actions without previous injunction measures
• Information on representative actions at the trader’s expense
• Impact of final decisions
• Maintenance of suspension of limitation periods
• Clearer assistance for qualified entities
• Ensuring the application of air and rail passenger rights
• Applicability of the Directive to previous infringements
• Maintenance of a broad area of application