The EU’s collective consumer protection litigation is approaching – but will this result in lawsuit-dumping?

By: Trademagazin Date: 2022. 12. 21. 10:28

Based on a 2020 European directive, new rules will enter into force in Hungary on June 25, 2023, which may bring significant changes in the field of collective consumer protection litigation. The Parliament recently adopted the amendment to the law necessary for the transfer. But what does all this mean for companies to prepare for? Who are these authorized organizations and in the event of what violations will they be able to file a lawsuit on behalf of consumers? What can be requested in the claim? In which sectors will this be really interesting in practice? We talk about these Dr. with Dórá Balogh from the Schönherr Hetényi Law Firm.

Balogh Dóra

Apropos of the directive, with the rapid expansion of online commerce, the practices of some businesses that undermine consumer rights have also increased. These illegal practices usually harm a large number of consumers at the same time. However, consumers individually do not bother with litigation and often prefer not to take action against businesses, because the individual cases are of little value from the point of view of individuals and it does not seem worthwhile to bother with them. For this reason, many infringements can remain unenforced and “get away with” without consequences, which, if not individually, but in total can be serious and can give businesses that do not follow the rules a significant and “unfair” advantage. The effective consolidation of these lost claims is also hindered by different claim enforcement options in each member state – explained dr. Dora Balogh.