EU - Germany: The upcoming Collective Redress Directive
The German Model Declaratory Action (Musterfeststellungsklage) will soon face competition. At the end of June, after highly controversial discussions, the EU institutions agreed on a “Directive on representative actions for the protection of the collective interests of Consumers” that goes far beyond existing collective redress mechanisms in Germany. Even though the formal adoption of the Directive and its implementation by the national legislators are still outstanding and leave some room for discretion, companies are well advised to familiarise themselves with the upcoming system of collective redress, to adapt their analysis of litigation risks and to implement measures in order to avoid existence-threatening litigation.