Towards new rules for collective redress in Spain
The Spanish government has fired the starting gun for implementing the EU Collective Redress Directive in Spain: A constitutional bill containing efficiency measures for the justice system and for collective actions to protect consumer rights was approved by Spain’s government on 12 March 2024. It will now be fast-tracked through parliament and the government’s intention is for it to be enacted before the end of 2024.
The bill may change as a result of the parliamentary debates. In our client alert, however, we have have summarised the main changes according to the current version, as these are particularly important for companies. The following highlights are worth noting:
- The bill has an ambitious scope.
- An opt-out mechanism applies.
- The entity that files the action will deal with the process through an online tool.
- To certify actions, Spanish courts will assess commonality in how consumers have been affected by the company’s conduct or activity.
- Only qualified entities (public bodies or organisations) that meet certain requirements can bring actions for redress.
- The rules open the door to third party funding.