Group lawsuits so consumers can claim together in court

Automatic summary, not yet reviewed

1. The bill would create a special court procedure for consumer collective actions, with two kinds of claims: injunctions to stop unlawful business practices, and redress claims to repair the harm caused.
2. In redress actions, the ruling would generally bind all affected consumers unless they expressly ask to be excluded (the opt-out model). Only exceptionally, when each claim exceeds €3,000, could the court require consumers to opt in.
3. Before the case moves forward, the court would hold a certification hearing to check that the claim meets the requirements, that consumers' claims are homogeneous, and that the action is not manifestly unfounded.
4. Affected consumers would learn about the case through publicity in a public register and an electronic platform where they could, free of charge and without a lawyer, state whether they want to be bound by the case or not.
5. Consumer associations designated as qualified entities, the Public Prosecutor and certain public consumer bodies could bring these actions. Associations would have to prove independence, transparency and at least twelve months of effective activity.
6. To sue a business to stop an ongoing practice, the entity would first have to ask the business to stop and wait at least one month. Injunction rulings would carry daily fines of €600 to €60,000 if not complied with.
7. The parties could end the dispute with a settlement, which would only be binding if the court approves it after checking that it does not unfairly harm consumers.
8. The bill would also adapt several sector laws (advertising, contracting, consumer credit, medicines and others) to the new rules, and would transpose EU Directive (EU) 2020/1828 on consumer representation actions.

Who it affects

• Consumers: They could be covered by collective claims seeking injunctions or compensation without having to sue on their own.
• Businesses and professionals: They could face collective lawsuits, daily fines if they ignore rulings, and duties to disclose evidence.
• Consumer associations: They would need to be designated as qualified entities, meeting independence and transparency requirements, to bring these actions.
• First instance courts (Juzgados de Primera Instancia): They would hear these cases, with specialized courts designated per province.

Words worth knowing

Acción colectiva de cesación

A lawsuit asking the court to order a business to stop a practice that harms consumers and not repeat it.

Acción colectiva resarcitoria

A lawsuit asking the business to pay for or repair the harm caused to consumers.

Opt-out

A system where the ruling binds all affected consumers unless they expressly ask to be left out.

Audiencia de certificación

A hearing where the court checks whether the collective claim meets the requirements to continue.

Homologación

Court approval of a settlement between the business and the suing association, making it binding.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries