Nov. 29, 2020
The European Parliament has approved on the new collective redress in which EU consumers will have the possibility to collectively defend their rights in domestic and cross-border cases of unlawful practices. The new rules on collective redress were adopted on Nov. 24, 2020.
The Commission encourages a culture of reuse by making repairs more appealing, systematic, and cost efficient. The other requirements include better labelling of products regarding their durability, the prootion of local second-markets and repairers and clear rules for "green" claims in the advertising.
Parliament demanded tougher product safety rules to ensure all products sold in the EU are safe, irrespective of whether they are sold online or offline or were manufactured within or outside the EU.
Product safety rule:
- EU product safety rules and consumer rights have to be respected
- Tracing and recalling unsafe products must be improved
- Online platforms and marketplaces to take more responsibility to ensure products are safe
- Safety and security crucial for products containing Artificial Intelligence
How it will work
- Qualified entities, designated by EU countries, will be able to represent groups of consumers in collective cases
- Collective redress will be possible in all EU countries: at least one representative action mechanism must exist in all member states, allowing organisations to represent citizens, with the power to seek sanctions and compensation for the harm caused
- They will have to meet specific eligibility criteria: for cross-border representative action criteria are set out in the new rules, while for domestic proceedings the criteria are set out in national law
- The defeated party will pay the costs of the proceedings (“loser pays principle”), which aims to protect businesses against baseless lawsuits
- In addition to general consumer law, collective action would be allowed in cases involving trader violations in areas such as data protection, financial services, travel and tourism, energy, telecommunications, environment and health, as well as air and train passenger rights
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Plenary highlights: consumer rights, homelessness, media freedom
Thanks to new collective redress rules Parliament approved on Tuesday, EU consumers will have the possibility to come together to defend their rights in domestic and cross-border cases of unlawful practices.
On Wednesday MEPS called on the Commission to encourage a culture of reuse by making repairs more appealing, systematic, and cost-efficient. They also want better labelling of products regarding their durability, the promotion of local second-markets and repairers and clear rules for "green" claims in the advertising.
Parliament demanded tougher product safety rules to ensure all products sold in the EU are safe, irrespective of whether they are sold online or offline or were manufactured within or outside the EU.
In a debate on Wednesday, MEPs urged member states to agree on the 2021-2027 budget and thus allow EU funds to flow to help alleviate the Covid-19 crisis. They also pointed out that Parliament needs time to consider and vote on any EU-UK deal.
Parliament wants to better protect consumers from unsafe products
Parliament calls for greater efforts to remove unsafe products from the EU market and to adapt product safety rules to the digital age.
The resolution on product safety in the Single Market was adopted on Wednesday with 688 in favour (eight against and one abstention).
MEPs emphasise that all products circulating within the EU must comply with product safety rules – whether manufactured inside or outside the EU – in order to assure fairer competition between companies, guarantee traceability, and provide reliable product information to consumers. They urge online platforms and marketplaces to take proactive measures to tackle misleading practices.
Better market surveillance needed
MEPs insist that if EU rules are not respected, products that pose a safety hazard, contain dangerous chemicals, or have unsafe software must be effectively recalled from the EU market and that the market surveillance system has to be improved. They also stress that it is key to adapt product safety rules to the digital transition. Emerging technologies must be safe and secure. To guarantee this, effective checks must be developed to test high-risk products that use Artificial Intelligence, they say.
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New rules to allow collective EU consumer action
New rules on collective redress will allow EU consumers to come together to fight domestic and cross-border cases of unlawful practices.
The rules will also ensure protection from abusive lawsuits through the “loser pays” principle.
A more globalised and digitalised world has increased the risk of a large number of consumers being harmed by the same unlawful practices. Currently, it is only possible for consumers to join forces when fighting for their rights in a few EU member states and it is virtually impossible in cases spanning more than one country.New rules on collective redress will
give consumers in all member states the right to fight cases involving
mass harm together, but also introduce safeguards to prevent the abuse
of the procedure.
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