News 2021/05/31

EJF updates its comprehensive Monitoring Report on Collective Redress Regulation in Europe

Following the publication of the first comprehensive Monitoring Report on Collective Redress, EJF has updated the report including new data for Italy. Please find the updated monitoring report here.

News 2024/04/23

ADR regulatory process update

On 17 October 2023, the Commission adopted a proposal for a directive amending Directive 2013/11/EU on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828.

The proposal entails several key changes:

It extends consumer rights to non-contractual and pre-contractual situations, including digital content and services, and allows for additional dispute resolution categories. It removes geographical establishment requirements for traders, defining cross-border disputes between consumers and traders in different EU states.
The changes allow bundling similar cases into one procedure with consumer consent, impose a 20-day response deadline for traders to ADR requests, and permit Member States to mandate trader participation in ADR.
It ensures complaint traceability and support for vulnerable consumers, including non-digital procedures upon request. Parties have the right to human review of automated ADR processes.
Improved information access and assistance for cross-border disputes are mandated, with ADR contact points designated by Member States.

To enhance trader participation, amendments proposed by the IMCO Committee make participation mandatory for certain air carriers and extend the scope to include pre-contractual obligations.

To boost consumer awareness, amendments aim to improve the impartiality and quality of ADR procedures, requiring human review of automated processes and general understanding of private law in cross-border cases by ADR personnel.

On 13 March, the Plenary endorsed the report as Parliament first reading position with 605 votes in favour, 7 votes against and 13 abstentions. In the Council, it has been referred to the Working Party on Consumer Protection and Information, which debated it for the last time on 22 April.

It is uncertain whether the ADR will be adopted before the European Parliament elections in June. Any institutional change in the midst of this process could influence the regulatory process and final result of the file.

News 2024/03/21

Trialogue: CS3D passing Council agreement

On 15 March 2024, the Belgian Council Presidency successfully brokered an interinstitutional agreement on the Corporate Sustainability Due Diligence Directive (CS3D), presenting a compromise text that garnered the required Qualified Majority Voting. It underwent significant revisions to address the regulatory burden or alleviate it.

News 2023/12/18

EJF organises TPLF event with AmChamEU - "Access to justice but not for profit"

Legal experts, policymakers, and representatives from industry and consumer side as well as academia gathered on the 1^st of December for an insightful discussion on TPLF organized by EJF in collaboration with the American Chamber of Commerce to the European Union. The event delved into the crucial aspects of effective and fair delivery of justice, proportionality, sensible regulation, oversight, and transparency in the context of TPLF.

News 2023/11/02

EJF Collaborates in the Joint Industry Statement Concerning PLD Proposed Revision

The European industry is deeply concerned about the proposed revision of the PLD. EJF and other European organizations have published an Industry Statement stating that the proposed revision, as it stands, could disrupt the balance between consumer protection and business interests, potentially leading to a culture of litigation in Europe. This imbalance would not only affect companies but also consumers: innovations could become too risky, and rising legal cost exposure might result in a cost spiral making products and services more expensive (social inflation).

The proposed changes to the directive may eliminate existing safeguards and create a litigation-friendly environment, increasing the legal risks and complexity for European businesses, especially smaller companies. The primary beneficiaries of these changes would be lawyers and third-party litigation funders, not consumers.

Moreover, there are questions over the expansion of the Directive to cover digital products, shifting the burden of proof, and its disclosure of evidence provisions, all of which pose significant challenges for businesses. We urge European policymakers to reconsider these measures and strike a balance that modernizes product liability without undermining innovation and legal certainty.

Read the full statement here.

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