On 26 March, BusinessEurope, Cefic and EJF co-hosted a high-level roundtable in Brussels to discuss the growing role of TPLF in Europe’s mass litigation landscape. The event brought together legal experts, EU policymakers, industry leaders, and civil society representatives for an insightful discussion on the risks and opportunities presented by this fast-growing practice.
The discussion was timely. A recent study from the European Centre for International Political Economy (ECIPE) estimates that mass litigation could cost EU businesses up to €84.8 billion in private enforcement expenses. Moreover, the High Level Forum Meeting of the EU Commission’s “Justice for Growth” initiative took place a day later.
While participants acknowledged that TPLF can improve access to justice, especially in cases where individual claims may not be economically viable, they also highlighted significant risks, such as conflicts of interest between funders and claimants or beneficiaries and the general commercialisation of justice.
The discussion revealed a strong consensus that time for action is now. While some stakeholders (particularly Member States and consumer organisations) remain cautious, there was a broad agreement that EU-level regulation is necessary to ensure fair practices and prevent abuse – echoing the findings from the European Commission’s recent mapping study, in which 54% of respondents supported EU-level action.
In particular, the participants of the roundtable called attention to the need for safeguards, such as mandatory transparency on funding arrangements to independent and knowledgeable public bodies for effective control avoiding conflicts of interest, setting a minimum portion of redress awards to be handed to beneficiaries, capital adequacy and oversight mechanisms to ensure funders can fulfil their liabilities.
Overall, the event reaffirmed the need for the EU to take a leading role in this area, aiming at striking a fair balance between enhancing access to justice and protecting Europe’s economic competitiveness.
For further information, access the meeting report below.