Factsheet: For a REAL “Fair Deal for EU consumers”

The document addresses claims that a proposed EU Directive on collective redress would lead to abusive litigation, forum shopping, and the creation of shell organizations by law firms. ClientEarth argues that the proposal's requirements for 'Qualified Entities'—including non-profit status and funding disclosure—prevent law firms from controlling cases. It further asserts that the proposal maintains safeguards against abusive litigation, noting that a 2018 Commission study found no substantiated instances of such abuse in the EU over the preceding five years. The document concludes that the EU system is more restrictive than existing mechanisms and is distinct from the US class action model.

• The proposal prevents law firms from using Qualified Entities as shell organizations through Article 4, which requires entities to have a 'non-profit character' and a 'legitimate interest' in EU law compliance, and Article 7, which mandates the disclosure of all funding sources and prohibits third-party funders from influencing decisions.
• The proposed system differs from US class actions by restricting collective actions to organizations acting in the public interest and allowing Member States to require that consumers be previously identified in compensation claims.
• There is no evidence of widespread abusive litigation in the EU; a January 2018 Commission study confirmed that there were no substantiated instances of abusive litigation in the EU in the five years prior to the study.
• The proposal addresses the risk of multiple simultaneous claims through Article 16(2), which provides instructions for similar cases launched in different Member States. In France, where such actions are already permitted in health, consumer, and environmental cases, only 11 actions were brought in the five years preceding an October 2018 study.
• The proposal does not create an unfettered choice of forum for 'forum shopping' because jurisdiction is governed by existing Brussels I and Rome I-III Regulations.

APA

ClientEarth (n.d.). Factsheet: For a REAL “Fair Deal for EU consumers”. https://www.clientearth.org/media/g5cb1xjd/seven-industry-claims-on-collective-and-why-they-are-false-or-misleading-coll-en.pdf

Chicago

ClientEarth. Factsheet: For a REAL “Fair Deal for EU consumers”. n.d. https://www.clientearth.org/media/g5cb1xjd/seven-industry-claims-on-collective-and-why-they-are-false-or-misleading-coll-en.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=Factsheet: For a REAL “Fair Deal for EU consumers” |url=https://www.clientearth.org/media/g5cb1xjd/seven-industry-claims-on-collective-and-why-they-are-false-or-misleading-coll-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearthndfactsheet, author = {{ClientEarth}}, title = {{Factsheet: For a REAL “Fair Deal for EU consumers”}}, institution = {ClientEarth}, url = {https://www.clientearth.org/media/g5cb1xjd/seven-industry-claims-on-collective-and-why-they-are-false-or-misleading-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }