Collective redress

On 4 December 2020, the Directive on “representative actions for the protection of the collective interests of consumers”, the so-called Collective Redress Directive ((EU) 2020/1828) was published in the EU Official Journal and entered into force on 24 December 2020. Member States have two years to transpose it and are required to apply it from 25 June 2023.

The aim of these rules is to put in place an EU-wide enforcement system of Union law establishing obligations for the protection of consumers. Consumers harmed by a trader, such as insurers or insurance intermediaries, who allegedly infringed specific EU legal acts listed in the Annex (such as the IDD), can bring actions against the infringing trader collectively, represented by a qualified entity, e.g. consumer association. Such actions will seek to prohibit an illegal practice and/or compensation (injunction order & redress order respectively).

The Directive covers infringements of financial and insurance services legislation, including the IDD, MiFID II, PRIIPs, Solvency II, and GDPR.


- Published in June 2021 -

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