Kuneva: collective redress is not based on class action law

Consumer Protection Commissioner Meglena Kuneva will ensure that forthcoming proposals on collective redress, aimed at allowing consumers to unite across borders to take on corporate wrongdoers, are not influenced by US class action law.

The proposals are part of a broad-based consumer strategy to be published next week (13 March). As well as covering redress, the strategy addresses issues such as safety, monitoring, services of general interest and online trade. The main aim of the strategy, according to Kuneva’s spokesperson Helen Kearns, is to "mark a turning point in how the Commission sees consumers, not just as weak people who need to be protected, but as…drivers of change".

Proposals on collective redress would place considerable power in the hands of individuals.

"Consumer confidence depends on a fair market and that means consumers knowing that there are tough systems in place to sort out problems when they are ripped off and when things go wrong," said Kearns.

Kearns insisted that, while Kuneva has yet to commission a study on different forms of redress, US-style class action, the most extreme form of collective redress permitting one person to represent a host of others, has definitely been ruled out.

"There are lots of different forms of collective redress. Class action is one," said Kearns, "there are different models in Sweden, Portugal, Germany and France."

Such models could include representative actions which are introduced by an organisation on behalf of individuals and group actions where people join together in a common claim.

Consumer Protection Commissioner Meglena Kuneva will ensure that forthcoming proposals on collective redress, aimed at allowing consumers to unite across borders to take on corporate wrongdoers, are not influenced by US class action law.

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