The European Commission has launched on 4 February a public consultation in order to seek opinions regarding collective redress measures in the European Union. The Commission aims to identify common legal principles which should underpin collective actions across the EU, such as the need for effectiveness and efficiency, information for citizens and safeguards against abusive litigation. The outcome of this public consultation, which is open until the end of April 2011, will determine if further regulation is required.

The Commission has launched a horizontal public consultation towards a more coherent European approach to collective redress, whose purpose is, among other things, to identify common legal principles, determine whether a future Commission initiative should be presented on collective redress and how these principles could fit into the EU legal system and into the legal orders of the 27 EU Member States. The consultation also explores in which fields different forms of collective redress could have an added value for improving the enforcement of EU legislation or for better protecting the rights of victims.

Collective redress is a broad concept that includes injunctive relief (lawsuits seeking to stop illegal behaviour) and compensatory relief (lawsuits seeking damages for the harm caused). It needs to be clearly distinguished from so-called "class actions" that are common under the US legal system. In Europe, collective redress procedures can take a variety of forms, such as actions in court, out-of-court settlements, alternative dispute resolution mechanisms, as well as entrusting representatives with the enforcement of legal claims.

This is not a new concept in the European Union as injunctive collective redress is a normal feature in the EU's consumer legislation and also known in the field of EU environmental law. On the national level, however, while some member states have collective actions for damages, some others do not.

This public consultation will inform the Commission’s eventual position on collective redress. As none position has already been taken, the Commission will take into account all views to identify whether collective redress may or may not be a suitable subject for EU legislation, taking into account the principles of subsidiarity, proportionality and effectiveness. A hearing will be held to complete the consultation. The final decision on whether new EU legislation is needed will be based on the consultation’s outcome and, if appropriate, after a detailed impact assessment exploring all possible actions.