BETA

Activities of Othmar KARAS related to 2018/0089(COD)

Plenary speeches (1)

Representative actions for the protection of the collective interests of consumers (debate)
2020/11/24
Dossiers: 2018/0089(COD)

Amendments (27)

Amendment 57 #
Proposal for a directive
Recital 10
(10) As only qualified entities can bring the representative actions, to ensure that the collective interests of consumers are adequately represented the qualified entities should comply with the criteria established by this Directive. In particular, they would need to be properly constituted according to the law of a Member State, which could include for example requirements regarding the number of members, the degree of permanence, or transparency requirements on relevant aspects of their structure such as their constitutive statutes, management structure, objectives and working methods. They should also be not for profit and have a legitimate interest in ensuring compliance with the relevant Union law. These criteria should apply to both qualified entities designated in advance and to ad hoc qualified entities that are constituted for the purpose of a specific action.
2018/09/28
Committee: IMCO
Amendment 62 #
Proposal for a directive
Recital 11
(11) Independent public bodies and consumer organisations in particular should play an active role in ensuring compliance with relevant provisions of Union law and are all well placed to act as qualified entities. Since these entities have access to different sources of information regarding traders' practices towards consumers and hold different priorities for their activities, Member States should be free to decide on the types of measures that may be sought by each of these qualified entities in representative actions.deleted
2018/09/28
Committee: IMCO
Amendment 68 #
Proposal for a directive
Recital 13
(13) To increase the procedural effectiveness of representative actions, qualified entities should have the possibility to seek different measures within a single representative action or within separate representative actions. These measures should include interim measures for stopping an ongoing practice or prohibiting a practice in case the practice has not been carried out but there is a risk that it would cause serious or irreversible harm to consumers, measures establishing that a given practice constitutes an infringement of law and, if necessary, stopping or prohibiting the practice for the future, as well as measures eliminating the continuing effects of the infringement, including redress. If sought within a single action, qualified entities should be able to seek all relevant measures at the moment of bringing the action or first seek relevant injunctions order and subsequently and if appropriate redressdeclaratory order.
2018/09/28
Committee: IMCO
Amendment 76 #
Proposal for a directive
Recital 18
(18) Member States may require qualified entities to provide sufficient information to support a representative action for redress, including a description of the group of consumers concerned by an infringement and the questions of fact and law to be resolved within the representative action. The qualified entity should not be required to individually identify all consumers concerned by an infringement in order to initiate the action. In representative actions for redress the court or administrative authority should verify at the earliest possible stage of the proceedings whether the case is suitable for being brought as a representative action, given the nature of the infringement and characteristics of the damages suffered by consumers concerned.
2018/09/28
Committee: IMCO
Amendment 80 #
Proposal for a directive
Recital 19
(19) Member States should be allowed to decide whether their court or national authority seized of a representative action for redress may exceptionally issue, instead of a redress order, a declaratory decision regarding the liability of the trader towards the consumers harmed by an infringement which could be directly relied upon in subsequent redress actions by individual consumers. This possibility should be reserved to duly justified cases where the quantification of the individual redress to be attributed to each of the consumer concerned by the representative action is complex and it would be inefficient to carry it out within the representative action. Declaratory decisions should not be issued in situations which are not complex and in particular where consumers concerned are identifiable and where the consumers have suffered a comparable harm in relation to a period of time or a purchase. Similarly, declaratory decisions should not be issued where the amount of loss suffered by each of the individual consumers is so small that individual consumers are unlikely to claim for individual redress. The court or the national authority should duly motivate its recourse to a declaratory decision instead of a redress order in a particular case.deleted
2018/09/28
Committee: IMCO
Amendment 84 #
Proposal for a directive
Recital 20
(20) Where consumers concerned by the same practice are identifiable and they suffered comparable harm in relation to a period of time or a purchase, such as in the case of long-term consumer contracts, the court or administrative authority may clearly define the group of consumers concerned by the infringement in the course of the representative action. In particular, the court or administrative authority could ask the infringing trader to provide relevant information, such as the identity of the consumers concerned and the duration of the practice. For expediency and efficiency reasons, in these cases Member States in accordance with their national laws could consider to provide consumers with the possibility to directly benefit from a redress order after it was issued without being required to give their individual mandate before the redress order is issued.deleted
2018/09/28
Committee: IMCO
Amendment 87 #
Proposal for a directive
Recital 21
(21) In low-value cases most consumers are unlikely to take action in order to enforce their rights because the efforts would outweigh the individual benefits. However, if the same practice concerns a number of consumers, the aggregated loss may be significant. In such cases, a court or authority may consider that it is disproportionate to distribute the funds back to the consumers concerned, for example because it is too onerous or impracticable. Therefore the funds received as redress through representative actions would better serve the purposes of the protection of collective interests of consumers and should be directed to a relevant public purpose, such as a consumer legal aid fund, awareness campaigns or consumer movements.deleted
2018/09/28
Committee: IMCO
Amendment 102 #
Proposal for a directive
Recital 27
(27) Member States may provide that a qualified entity and a trader who have reached a settlement regarding redress for consumers affected by an allegedly illegal practice of that trader can jointly request a court or administrative authority to approve it. Such request should be admitted by the court or administrative authority only if there is no other ongoing representative action regarding the same practice. A competent court or administrative authority approving such collective settlement must take into consideration the interests and rights of all parties concerned, including individual consumers. Individual consumers concerned shall be given the possibility to accept or to refuse to be bound by such a settlement.
2018/09/28
Committee: IMCO
Amendment 107 #
Proposal for a directive
Recital 30
(30) Any out-of-court settlement reached within the context of a representative action or based on a final declaratory decision should be approved by the relevant court or the administrative authority to ensure its legality and fairness, taking into consideration the interests and rights of all parties concerned. Individual consumers concerned shall be given the possibility to accept or to refuse to be bound by such a settlement.
2018/09/28
Committee: IMCO
Amendment 111 #
Proposal for a directive
Recital 31
(31) Ensuring that consumers are informed about a representative action is crucial for its success. Consumers should be informed of ongoing representative action, the fact that a trader's practice has been considered as a breach of law, their rights following the establishment of an infringement and any subsequent steps to be taken by consumers concerned, particularly for obtaining redress. The reputational risks associated with spreading information about the infringement are also important for deterring traders infringing consumer rights.
2018/09/28
Committee: IMCO
Amendment 120 #
Proposal for a directive
Recital 37
(37) Evidence is an important element for establishing whether a given practice constitutes an infringement of law, whether there is a risk of its repetition, for determining the consumers concerned by an infringement, deciding on redress and adequately informing consumers concerned by a representative action about the ongoing proceedings and its final outcomes. However, business-to-consumer relationships are characterised by information asymmetry and the necessary information may be held exclusively by the trader, making it inaccessible to the qualified entity. Qualified entities should therefore be afforded the right to request to the competent court or administrative authority the disclosure by the trader of evidence relevant to their claim or needed for adequately informing consumers concerned about the representative action, without it being necessary for them to specify individual items of evidence. The need, scope and proportionality of such disclosure should be carefully assessed by the court or administrative authority overseeing the representative action having regard to the protection of legitimate interests of third parties and subject to the applicable Union and national rules on confidentiality.
2018/09/28
Committee: IMCO
Amendment 130 #
Proposal for a directive
Article 1 – paragraph 1
1. This Directive sets out rules enabling qualified entities to seek representative actions aimed at the protection of the collective interests of consumers, while ensuring appropriate safeguards at EU and Member State level and their consistent EU-wide application to avoid abusive litigation.
2018/09/28
Committee: IMCO
Amendment 136 #
Proposal for a directive
Article 2 – paragraph 1
1. This Directive shall apply to representative actions brought against alleged infringements by traders of provisions of the Union law listed in Annex I that harm or may harm the collective interests of consumers. It shall apply to domestic and cross-border infringements, including where those infringements have ceased before the representative actwidespread domestic infringements, and widespread infringements with a Union dimension has started or before the representative action has been concludeddefined in Regulation 2017/2394.
2018/09/28
Committee: IMCO
Amendment 141 #
Proposal for a directive
Article 3 – paragraph 1 – point 3
(3) ‘collective interests of consumers’ means the interests of a high number of consumers;
2018/09/28
Committee: IMCO
Amendment 147 #
Proposal for a directive
Article 4 – title
Qualified entCompetent authorities
2018/09/28
Committee: IMCO
Amendment 149 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1
For the purpose of this Directive, Member States shall ensure that representative actions can be brought by qualified entities designatedcompetent authorities designated in Article 5 of Regulation 2017/2394, at their request, by the Member States in advance for this purpose and placed in a publicly available list.
2018/09/28
Committee: IMCO
Amendment 150 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 2
Member States shall designate an entity as qualified entity if it complies with the following criteria: (a) it is properly constituted according to the law of a Member State; (b) it has a legitimate interest in ensuring that provisions of Union law covered by this Directive are complied with; (c) it has a non-profit making character.deleted
2018/09/28
Committee: IMCO
Amendment 168 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 3
Member States shall assess on a regular basis whether a qualified entity continues to comply with these criteria. Member States shall ensure that the qualified entity loses its status under this Directive if it no longer complies with one or more of the criteria listed in the first subparagraph.deleted
2018/09/28
Committee: IMCO
Amendment 171 #
Proposal for a directive
Article 4 – paragraph 2
2. Member States may designate a qualified entity on an ad hoc basis for a particular representative action, at its request, if it complies with the criteria referred to in paragraph 1.deleted
2018/09/28
Committee: IMCO
Amendment 186 #
Proposal for a directive
Article 5 – paragraph 1
1. Member States shall ensure that representative actions can be brought before national courts or administrative authorities by qualified entities provided that there is a direct relationship between the main objectives of the entity and the rights granted under Union law that are claimed to have been violated in respect of which the action is broughtcompetent authorities.
2018/09/28
Committee: IMCO
Amendment 188 #
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1 – introductory part
Member States shall ensure that qualified entcompetent authorities are entitled to bring representative actions seeking the following measures:
2018/09/28
Committee: IMCO
Amendment 189 #
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1 – point a
(a) an injunction order as an interim measure for stopping thean illegal practice or, if the practice has not yet been carried out but is imminent, prohibiting the illegal practice;
2018/09/28
Committee: IMCO
Amendment 216 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1
For the purposes of Article 5(3), Member States shall ensure that qualified entcompetent authorities are entitled to bring representative actions seeking a redress order, which obligates the trader to provide for, inter alia, compensation, repair, replacement, price reduction, contract termination or reimbursement of the price paid, as appropriate. A Member State mayshall require the mandate of the individual consumers concerned before a declaratory decision is made or a redress order is issued.
2018/09/28
Committee: IMCO
Amendment 221 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 2
The qualified entcompetent authority shall provide sufficientall information as required under national law to support the action, including a description of the consumers concerned by the action and the questions of fact and law to be resolved.
2018/09/28
Committee: IMCO
Amendment 234 #
Proposal for a directive
Article 6 – paragraph 3 – point b
(b) consumers have suffered a small amount of loss and it would be disproportionate to distribute the redress to them. In such cases, Member States shall ensure that the mandate of the individual consumers concerned is not required. The redress shall be directed to a public purpose serving the collective interests of consumers.deleted
2018/09/28
Committee: IMCO
Amendment 242 #
Proposal for a directive
Article 7
1. The qualified entity seeking a redress order as referred in Article 6(1) shall declare at an early stage of the action the source of the funds used for its activity in general and the funds that it uses to support the action. It shall demonstrate that it has sufficient financial resources to represent the best interests of the consumers concerned and to meet any adverse costs should the action fail. 2. Member States shall ensure that in cases where a representative action for redress is funded by a third party, it is prohibited for the third party: (a) to influence decisions of the qualified entity in the context of a representative action, including on settlements; (b) to provide financing for a collective action against a defendant who is a competitor of the fund provider or against a defendant on whom the fund provider is dependant; 3. Member States shall ensure that courts and administrative authorities are empowered to assess the circumstances referred to in paragraph 2 and accordingly require the qualified entity to refuse the relevant funding and, if necessary, reject the standing of the qualified entity in a specific case.Article 7 deleted Funding
2018/09/28
Committee: IMCO
Amendment 263 #
Proposal for a directive
Article 9
Information on representative actions 1. Member States shall ensure that the court or administrative authority shall require the infringing trader to inform affected consumers at its expense about the final decisions providing for measures referred to in Articles 5 and 6, and the approved settlements referred to in Article 8, by means appropriate to the circumstance of the case and within specified time limits, including, where appropriate, through notifying all consumers concerned individually. 2. The information referred to in paragraph 1 shall include in intelligible language an explanation of the subject- matter of the representative action, its legal consequences and, if relevant, the subsequent steps to be taken by the consumers concerned.Article 9 deleted
2018/09/28
Committee: IMCO