The CEA argued that the need for an EU-wide collective redress scheme has not been demonstrated, and that priority should be given to improving consumer awareness of existing alternative dispute resolution (ADR) schemes.
The CEA also recommended that the results of the EC’s ongoing consultation on ADR should be awaited before introducing any new procedure at EU level.
In its response to the Commission consultation, the CEA stressed that adequate safeguards are necessary if the EC nevertheless decides to introduce an EU collective redress system: consumers should be able to decide whether they wish to join a collective redress action through an opt-in system; the “loser pays” principle, where the losing party pays the costs of the proceedings, should be applied to avoid unmerited collective redress claims; and the organisations entitled to bring collective redress actions should be restricted to non-profit consumer organisations.
The EC will publish a Communication on the general principles of collective redress before the end of the year and a possible legislative proposal in 2012.
© CEA - Comité Européen des Assurances
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