Collective Redress in the EU: the Commission’s Plans Dr Alexandra McConnell BIICL PLF: Product Liability & Mass Torts in a Global Marketplace London, 7 June 2007

consumer protection Commissioner Meglena Kuneva (13 March 2007): “empowering consumers is a central pillar of the new consumer strategy. I want to put power back into consumers’ hands” collective redress for infringements of consumer protection and competition key in the 6 year strategy to “boost consumer confidence” by 2013

competition Commissioner Neelie Kroes (8 March 2007): “[a] representative action – empowering groups that truly represent the interests of consumers - is closer to the heart of European traditions” Which?/JJB – football shirts (UK) Green Paper on damages actions for breach of EC antitrust rules (December 2005)

rationale/context to complement regulatory fines existing/developing collective redress mechanisms at national level national level proposals UK DTI consultation on representative actions (July 2006) UK OFT consultation on private actions in competition law (opt-outs) (18 April 2007) France – collective actions European Parliament resolution 28 April 2007 supporting competition law collective actions directly or via representative organisations

legitimacy? art. 10 EC Treaty Member States to take appropriate measures to ensure fulfilment of EC law direct effect “sufficiently clear, precise and unconditional” vertical and horizontal product liability directive medicines safety regulations/pharmacovigilance/penalties regulation? ECJ effet utile and national procedural autonomy political will and consumer/market demand sufficient?

action “the Commission will take action to consider action on collective redress mechanisms” “the Commission hopes to bring forward policies in 2008” tender for the evaluation of the effectiveness and efficiency of collective redress mechanisms in EU (8 March 2007) final report on analysis and evaluation of alternative means of consumer redress (17 January 2007)

substance? encouraging streamlined but distinct national procedures? cultural and ethical divergencies in Member States all out harmonisation? “one option but could be highly controversial and time-consuming” (Commr. Kuneva)

EU v US “let me be clear – collective redress is not US style class action. That is not the road we intend to travel” (Commr Kuneva) “private enforcement is nothing to do with encouraging a litigation culture. We should learn from our neighbours’ experience and then design European solutions” (Commr Kroes)

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