Redress system to strengthen consumer rights

The prospect of class actions for European consumers unhappy with their purchases moved a step closer yesterday when the EU commissioner…

The prospect of class actions for European consumers unhappy with their purchases moved a step closer yesterday when the EU commissioner for consumer protection unveiled plans for a form of collective redress across EU member states.

However, in her address to the European Parliament, Bulgarian commissioner Meglena Kuneva stressed she did "not have in mind the United States type of class action".

Instead, shesaid, there was "another European narrative" more related to collective redress. It is understood such forms of redress would principally apply to infringements of consumer protection rules and breaches of European anti-trust rules.

The European Commission recently launched a study into collective redress, and the result of this would be presented and discussed with parliament once these were known, Ms Kuneva said. She also indicated that other options were open to the commission where consumers were unhappy, including alternative dispute resolutions and test cases.

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Ms Kuneva's consumer strategy sets out more than 20 legislative and non-legislative initiatives to boost the retail side of the EU's single market by 2013. It aims to boost confidence in the single market with a view to allowing consumers to shop freely across borders with confidence.

"With this strategy we aim to wake a sleeping giant, the retail side of the single market . . . I want to build trust in the market and give people more choice and value for money," she said.