Country insight

In all Australian jurisdictions, a representative proceeding, or class action (as it is more commonly known in Australia) may be commenced by or against any one person as a representative of numerous persons (the minimum number required is generally seven people) who have the same interest in the proceeding and the claims brought give rise to a substantial common issue of law or fact. It is possible to commence a class action against multiple defendants and there is no requirement for every group member to have a claim against every defendant.

An overarching consideration of the courts in hearing a representative proceeding is whether it involves less delay, expense, and prejudice to the parties than alternative forms of trial. If not, the court may discontinue the proceedings.

The Federal, New South Wales, Victorian and, most recently, Queensland jurisdictions contain further statutory provisions in relation to representative proceedings, which are arguably more liberal and plaintiff-friendly than other jurisdictions. These jurisdictions allow representative proceedings to be brought where seven or more people have claims which arise out of the same or related circumstances and give rise to a substantial common issue of fact or law. Over 90% of all class actions filed in Australia from 1992-2009 were filed in the Federal Court of Australia.

When a representative proceeding is commenced, all potential plaintiffs who fall within a class become members of the class, whether they are aware of the claim or not. Members can then opt out of the proceedings before a date set by the court. All class members who do not opt out will be bound by the judgment of the court or by any approved settlement.

It is important to note that, although some states have yet to formally abolish the law of champerty and maintenance, outside of the US, Australia has one of the most developed class action industries, with a variety of large, class action plaintiff law firms and with many litigation funders having been active in the jurisdiction for over 20 years. This active funding industry has seen a continued increase in the number of class actions being commenced in Australia.

Austrian law does not provide for a civil legal procedure comparable to “class actions”. The most important form of collective redress in Austria is a concept called “collective actions Austrian style” (Sammelklage österreichischer Prägung). This can either be commenced by an association that promotes the interest of a group of persons suffering damages, such as consumers or employees, or by several claimants who have the same interest in the proceedings. There is no limitation to a particular area of the law. The same interest does not need to arise out of the same action or transaction, but requires a shared interest in the determination of some question of law or fact. In contrast to the class action system in the US, Austrian claimants must take positive steps to get involved in a class action. The entitled parties assign their claims to an association or another legal person, which asserts the individual claims in a collective, comprehensive claim. On this basis, Austria operates an “opt-in” collective redress mechanism.

In Bahrain, class action proceedings may be permitted, provided the parties all have the same  cause of action. In addition, any person may intervene and join ongoing litigation if that person has an interest that is relevant or related to the case. The intervention can be made either in accordance with the regular procedures for filing a claim before the hearing, or by an oral request to the court during the hearing. Furthermore, the court has the discretion to judge the merits of the intervention and may reject the intervention if it is deemed to be fit and necessary. In practice, the decision regarding whether to carry forward such a case as a single action lies with the competent court. Usually the court chooses to conduct independent trials for each applicant. 

Class actions do exist under Belgian procedural law and are brought before the Business Court. The aim of such claims is to provide compensaton damage suffered by a group of plaintiffs. A class action can be brought on a large variety of topics, however a few requirements need to be met:

• The invoked cause constitutes a potential breach of the defendant’s obligations under contract, European regulations or the laws mentioned in Article XVII. 37 of the Economic Law Code. Whilst this means that class actions are not available for every type of case, the list of applicable cases is fairly extensive and includes actions under competition, market practices and consumer protection laws.
• The action is initiated by a group representative. For example, an association defending consumer interests with legal personality and that sits on the Special Advisory Commission for Consumer Affairs (such as FGTB or Test-achat, an association that has received ministerial approval) or a representative entity approved by a Member State of the European Union or the European Economic Area that meets specific criteria. The litigation group itself will consist of all consumers who, individually, are harmed by the common cause.
• A class action would be a more relevant and efficient procedure compared to normal court proceedings.

If these admissibility conditions are met, the class action procedure has two possible outcomes: an amicable settlement or a judicial decision.

The keys phases in the class action procedure can be summarised as follows:

• Admissibility phase: within two months of the request being filed, the court rules on the admissibility of the collective redress action.
• Negotiation phase: during the timeframe set by the court, the group representative and the defendant negotiate an agreement on compensation for collective harm.
• Approval phase: in case of an agreement between the group representative and the company regarding consumer compensation, the court reviews and, if it is satisfied with the agreement reached, grants approval.
• Substantive decision: if no agreement is reached, the court will issue a determinative ruling. The judge can either grant the collective redress request or reject it.

Federal Law no. 7.347/1985 provides legal grounds for class actions in Brazil. Despite the fact that class  actions are not limited to disputes involving consumer protection, the Brazilian Consumer’s Code (Law no. 8,078/90) contains further supplementary provisions regarding class actions. Brazilian scholars make reference to both laws as the class action system.

The class action system does not generally relate to large commercial disputes, but to actions brought to protect selected social assets, namely:

• the environment;
• consumers;
• rights of artistic, aesthetic, historic, touristic and landscape value;
• diffuse and collective rights;
• economic and urban orders;
• honor and dignity of racial, ethnic and religious groups; and
• public and social assets.

Only a limited number of institutions are allowed to bring class actions on behalf of a group. These institutions include:

• public attorneys;
• the office of the public defender;
• federal government, states, and municipalities;
• autonomous federal government agencies or federal public companies; and
• specific non-governmental associations.

For a non-governmental association to be able to file a class action, it must be active for more than one year. Non-governmental associations also only have standing to sue in cases involving infringements of rights which are within the scope of their activities. For instance, an association created for protecting the environment will only be able to file a class action to request that a company refrains from polluting a river, but not to protect consumers.

Further, whenever the respondent is held liable in a class action and is ordered to pay the amounts owed under the judgment, the amount shall not be paid directly to the plaintiff, but to a public fund that is used to protect collective rights.

In all Canadian jurisdictions, a representative or class proceeding may be commenced by a person as a representative of numerous persons who have a similar interest in the proceeding. A similar interest does not need to arise out of the same action or transaction, but requires a shared interest in the determination of some question of law or fact. 

The action does not proceed as a class action unless and until it is certified on a certification motion (or, in Quebec, an authorization motion). On such a motion, the issue is not whether the class action is likely to succeed on the merits but, rather, whether a class action is an appropriate manner of proceeding. The following are some of the requirements for certification of an action as a class action: 

• there is an identifiable class of two or more persons;
• the claims of the class members raise common questions of law or fact;
• a class proceeding is the preferable procedure for the just and efficient resolution of the common questions of law or fact; and
• there is a representative plaintiff who is well suited to represent the interests of the class. 

In Canadian jurisdictions other than Quebec, parties to a certification motion often file voluminous evidentiary records that may include experts’ reports. Where this is the case, the certification motion may stretch out over several days. In an authorization motion in Quebec, however, the facts alleged by the plaintiff are taken to be true, the motion may only be contested orally, and the defendants require leave of the court to file evidence. For this reason, Quebec is often seen as being a friendly jurisdiction for the institution of a class proceeding. 

A certification motion may proceed in two stages. At the first stage, the court will consider the above factors to determine the threshold issue as to whether the proceeding is appropriate to proceed procedurally as a class action. At the second stage of the certification motion, the court may determine the description of the class and define the common issues. 

If the court certifies the proceeding as a class action it will provide direction as to how class members are to receive notice of the class action. Once they receive notice, class members can choose to opt out of the class action. A class member who opts out of the class will not share in any award or settlement in the class action, and will not be bound by any order made in the class action. Having opted out, they may pursue their claims on an individual basis or simply choose not to pursue them at all. 

In Chile there is no general civil regulation for class actions. However, a range of procedures are available to enable multiple parties to bring claims. A number of claimants can simply bring a claim together, where the claims can be conveniently disposed of in the same proceedings. Multiple claims arising from common issues of law or fact may be also managed together.

An exception to this is the Consumer Protection Act, which establishes that consumers may file class actions regarding certain matters such as: retail, transportation, entertainment, certain construction and real estate, electrical services, sports services, education, sanitary services and TV services.

A consumer class action may be filed by:

• the Consumer Protection Agency;
• a consumer’s association; and
• a group of 50 or more consumers that have suffered the same damage or abuse.

In the PRC, a civil action involving two or more claimants and/or defendants is referred to as a collective action rather than a class action.

Amendments made to the 1991 Civil Procedure Law, effective from 1 January 2013 (2012 Amendments), introduced a provision regarding public interest collective actions, under which an authority or organization prescribed by law may institute a collective action for conduct that pollutes the environment, infringes upon the lawful rights and interests of a large group of consumers or otherwise damages public interest.

More recently, by virtue of the amended Civil Procedure Law, effective from 1 July 2017 (2017 Amendments), the organizations that are entitled to bring public interest collective actions are no longer restricted to those prescribed by the law. The new provision allows the people’s procuratorates (which are the PRC’s prosecution organs) to file a collective action where there is no such organization authorized by law to bring the action or such organization fails to do so.

To initiate a collective action, the following four conditions need to be satisfied:

• there are two or more claimants or defendants;
• the subject of the cause of action for each party is the same, or is of the same kind;
• the court considers that such multi-party claims may be dealt with collectively; and
• the parties involved consent to such collective action.

If the number of litigants on one side of a collective action is large, these litigants may be represented by two or no more than five representatives. Pursuant to the SPC Interpretation on Civil Procedure:

• if there are more than ten litigants, that is considered large;
• if the litigants fail to select any representatives, the court may nominate representatives for the litigants or designate representatives at its discretion; and
• each of the representatives may be represented by one or two attorneys.

If the claimants or defendants under a collective action cannot be fixed at the time the case is filed, potential participants may join the action by registration as follows:

• the court may issue a public notice, specifying the circumstances of the case and notifying others with similar interests to register with the court;
• the People’s Court has discretion to determine the term of public notice on a case-by-case basis, although this term must not be less than 30 days;
• potential participants who seek to register with the court should demonstrate their legal relationship with the opposing party and the damages they have suffered. Those failing to do so would not be registered but could still file a separate lawsuit; and
• the court’s decision on the collective action will bind those who have registered with the court. Subject to the court’s interpretation, such decision may also apply to those litigants who do not register with the court but who bring similar claims within the statutory limitation period.

Civil cases may be heard as a class action in Denmark.  

In order for a court to approve a claim to be heard as a class action, the following main requirements must be satisfied:

• The court has jurisdiction for one of the claims in question;
• Denmark has jurisdiction for all the claims in question;
• The claims have identical or substantially similar factual and legal bases;
• The claims are most appropriately dealt with by way of a class action;
• The group members can be identified and notified of the proceedings appropriately; and
• It is possible to designate a class representative, which will be designated by the court.

A class action is initiated by way of filing a writ of summons. In addition to the general requirements for the contents of a writ of summons, the writ must also describe the class in question, information about how the group members can be identified and notified of the proceedings and a suggestion of a class representative.

The court then frames the class action and determines the model for and deadline for group members’ participation. A class action lawsuit is usually an opt-in lawsuit, meaning that it only includes potential class members who have joined the class action by opting in. This applies unless the court determines that the class action should instead include the class members who have not opted out of the class action.

In both models, the court establishes a deadline for class members to opt in or out of the class action. The court may, in exceptional cases, allow opt ins or outs after the expiration of the deadline and even until the commencement of the trial. However, the exception provision is applied restrictively and only if there are specific justifications for it.

The legal parties in the class action are considered to be the class representative and the counterparty. However, the court’s rulings also legally bind the group members.

A judgment in a class action can be appealed both individually and collectively. However, a collective appeal will take precedence over an individual appeal. The class representative can appeal collectively, while class members can appeal individually.

The draft Act on collective proceedings (the Collective Redress & Class Actions 2022), which aims to transpose the European Directive on representative actions for the protection of the collective interests of consumers, is currently in the legislative process and is expected to be adopted in 2023.

The draft Act upholds the relatively narrow concept of class actions and does not aim to introduce the equivalent of the US Class Action Lawsuits, which allow claims in different areas of law. Class actions are to be limited exclusively to disputes arising from legal relations between businesses and consumers.

Only registered non-profit organisations which, in accordance with their main purpose, have a legitimate interest in protecting the rights or legitimate interests at stake will be allowed to bring a class action.

From the perspective of consumers, the class action procedure itself is based on the opt-in principle, i.e. consumers will have to either actively register their claim in the collective proceedings or pursue their claims individually after the end of the collective proceedings. Consumers who register their claim in the proceedings will not have the status of a party or intervening party and will have very limited procedural rights. The rights they do have will consist primarily of the right to be heard or the right to inspect the court file.

The draft Act introduces the disclosure of documents. A party will be allowed to request that the court order the other party to disclose reasonably accessible evidence and other means by which the true state of the case can be ascertained. If a party refuses to disclose this, it will be presumed that such evidence proves facts against that party’s case.

It is possible to file a class action in civil cases between a consumer and a company provided that several persons have claims against the same defendant and the claims are based on the same or similar circumstances. Further, it is required that the hearing of a class action claim is conducted expediently in view of:

• the size of the class;
• the subject-matter of the claims; and
• the evidence offered.

Either the Consumer Ombudsman or a qualified entity defined in the Act on Designation of Organizations Promoting of the Collective Interests of Consumers as Qualified Entities (implementing the Representative Actions Directive) shall represent the class, acting as a claimant.

The class action system is based on an opt-in procedure. The consumer must therefore expressly indicate their wish to participate in a representative action for redress. The opt-in right should be exercised by a written and signed notice of willingness to participate in the class action within the time limit set by the court, which may also grant an extension to the time limit. Further, the claimant may, on special grounds, accept a person as a class member if the person has submitted a notice of their willingness to participate in the class action after the expiry of the time limit but before the supplemented application for summons has been submitted to the court.

A decision issued in a class action can be appealed collectively and individually, meaning that if the claimant does not request a review of the decision issued in a class action, a member of the relevant class has the right to request a review in respect of their claim within 14 days of the end of the appeal period or the respective counter-appeal period.

A class action can be filed in disputes concerning a defect in consumer goods and interpretation of the terms of contract, disputes concerning sales and marketing of investment products, financial services and insurance as well as disputes relating to transport, data privacy and electronic communications.

Despite the fact that the Act on Class Actions came into force in 2007, no class actions have so far been filed in Finland.

After decades of debates and several aborted bills, class actions were introduced in France in 2014. Initially, they were limited to claims in the consumer law area. France has since created class actions in four other areas: health products, data privacy, environment and discrimination.

Further, a law enacted at the end of 2016 implemented a general framework applicable to class actions. Under the general rules of 2016, class actions can only be brought by specifically authorized associations. Such associations must have been duly registered for at least five years and their statutory purpose must include the defense of the interests that have been harmed.

The proceedings are divided into two phases: (i) a phase to define the class of claimants and the defendant's liability; and (ii) a phase to determine the amount of compensation to be paid to the individuals who suffered from the targeted wrongdoing. In France, the process works on the basis of a specific opt-in system. This allows consumers to apply to join the group after the decision on the defendant's liability.

Further to the Collective Redress Directive (UE) 2020/1828, aimed at introducing in all European Member States a cross border class action system, France will take the opportunity of implementing the Directive to adapt its class action system. It is expected that the new law would increase the conditions to be fulfilled by the associations to be allowed to bring a class action, in order to make the class actions more efficient in France.

Germany currently provides for collective redress, mainly in the form of a declaratory relief action (Musterfeststellungsklage) brought by a Qualified Entity (an organization or public body representing consumers’ interest). To file a declaratory relief action, at least 10 consumers must be affected by the allegations made in the lawsuit, and at least 50 consumers must opt in on the action. Once the declaratory relief proceedings are pending, no other action can be filed against the same defendant for the same cause of action.

However, there is an ongoing legislative process to implement a representative action in the form of a redress action awarding damages (Abhilfeklage), as well as an injunctive action awarding injunctions on a broader scale (Unterlassungsklage). The draft bill on representative actions builds on the declaratory relief action byexpanding its provisions, making a new law. This law is expected to come into force in autumn 2023 at the earliest , and will be introduced as a consequence of the binding EU Collective Redress Directive 2020/1828. The development and implementation of a representative redress action is an innovation in German law.

The representative redress action can only be brought by a Qualified Entity. To bring a redress action, a Qualified Entity must establish that more than 50 consumers “can potentially be affected” and the claims have to be essentially template-like. Affected consumers can pursue their rights by opting in on the action. However, there is no requirement of a minimum number of consumers to actually part take in the action. Once the redress action is pending, no other action can be filed against the same defendant for the same cause of action. Third party funding is permitted, if conflicts of interest between the funder and the consumers are prevented. However, this is impractical because the entire amount successfully claimed must be paid to the consumers, meaning that Qualified Entities are not able to offer customary remuneration to potential litigation funders in the form of a share of profits.

A representative proceeding may be commenced by or against any one person as a representative of numerous persons who have the same interest in the proceeding. Although bearing similarities to a class action, the procedure for a representative proceeding is generally no different from that of an ordinary court proceeding. The parties may include a brief outline in their endorsement of claim to note that it is a representative proceeding. The usual practise is to include an annex in the writ of summons to provide the list of individuals being represented. In line with other court proceedings, there is no specific timeline to commence the proceedings. The timeframe may vary significantly subject to the complexity and case management style of the specific matter.

A judgment in representative proceedings is enforceable against parties to the proceedings. If a party seeks to enforce the judgment against a person who is not an actual party to the proceedings but who is a member being represented, leave from the court is required. As a represented person is not considered to be a party to the proceedings, they are unable to appeal the judgment individually and the judgment will be appealed by the representative.

Other than the representative proceedings as described above, Hong Kong does not have any mechanisms available for collective redress or class action. In 2009, the Law Reform Commission issued a report which recommended a new mechanism for class actions. The Department of Justice established a cross-sector working group in 2012, and the working group has been holding regular meetings to study the proposals in the report in detail and to consider ways to take the matter forward. However, it has yet to publish any findings or recommendations so far.

There are three ways in which collective claims can be brought under Hungarian law:

• The closest instrument to the class action of common law jurisdictions is known in the Hungarian legal system as associated litigation.
  • This new instrument was introduced by the new Code of Civil Procedure in 2018 in limited types of cases; namely consumer, labor and environmental claims.
  • A class action may be filed by at least ten claimants. The claimants must enter into a contract setting out the terms of their class action, and nominating a representative claimant who appears before the court on behalf of all claimants. The claims, allegations, rights violated and underlying facts must be identical for all claimants. Multiple class actions are allowed on the same subject.
  • After a class action is filed, the court first decides whether the requirements of a class action are met. If the court decides the requirements are met, the class action can proceed and it will generally follow the same steps as in normal litigation, save that all procedural rights (including the right to appeal) will be exercised collectively through the representative claimant. Once the claim has been filed, it is only possible to join or leave the class action during the preparatory phase and only with the court's permission.
• The Civil Code allows public interest proceedings to be brought to declare standard contractual terms unfair.
  • Such proceedings may be initiated by the public prosecutor, the government, and certain consumer protection representatives against a company seeking to impose the unfair standard terms. The court may declare certain unfair standard contract terms between the company and its consumers null and void. The court's judgment is effective in respect of all consumers who have contracted under the same unfair term(s) with the company. The court may also require the company to publish a declaration of its unfair practice in one of the public newspapers.
  • Organizations representing businesses also have standing to bring public interest proceedings in limited circumstances, namely to challenge grossly unfair payment standard terms incorporated into business-to-business contracts.
• The third category is collective redress proceedings.
  • Different sectorial laws give confer on government agencies, authorities, the public prosecutor, or NGOs the right to launch collective redress proceedings if they encounter some sort of collective violation in their respective fields. The Central Bank, Competition Authority, Consumer Protection Authority, Public Utility and Energy Authority and Equal Treatment Authority, amongst others, have such rights. Collective redress proceedings can be launched either on behalf of aggrieved individuals, for example in consumer protection cases, or in the public interest, for example in environmental or animal welfare cases.
  • The applicable substantive law will determine what claimants may claim in these collective redress proceedings. For example, if the exact identity of the aggrieved consumers (i.e. the specific individuals who suffered harm) cannot be defined, the Consumer Protection Authority or the Competition Authority may only request the court to declare that there has been a violation. However, when the specific individuals who suffered harm are defined, these authorities may also sue for damages on behalf of the aggrieved consumers.

The following three types of rights can be protected through a class action:

• contractual rights of a group of consumers or end-users who are all in the same position with a particular company;
• similar rights that end-users of a given product or service have with a particular manufacturer, even in the absence of a direct contractual relationship; and
• similar rights to the restoration of losses suffered by consumers and end-users due to wrongful commercial practices or anticompetitive practices.

Italian law provides for two different types of class action proceedings:

• the ordinary regime under Articles 840-bis et seq. of the Italian Code that enables consumers and / or non-consumers to seek compensation for damages and / or restitution from undertakings or public service operators or utilities providers that have harmed their rights; and
• the new regime for representative actions under Articles 140- ter et seq. of the Italian Consumers’ Code, which grants consumers an enhanced protection against domestic and cross-border infringements in a broad range of areas such as product liability, data protection, travel and tourism, GDPR, and financial services, etc.

Both types of class action are subject to a common procedure consisting of three different phases: (i) an initial phase, which investigates the admissibility of the claim brought against the defendant on a preliminary basis, (ii) a second phase where, after the merits of the case have been assessed by the Court, a judgment upholding or dismissing the case is issued, and (iii) a final phase where the court determines the amounts eventually due to each and every class member who had opted into the class action.

Depending on the difficulty and complexity of the case brought by the claimant, a class action in first instance proceedings may last at least 30 to 36 months.

In particular, whilst it may take up to 12 to 18 months for a judgment on the merits of the case to be rendered by a First Instance Court, the liquidation phase may take at least 18 to 24 months depending on the overall number of class members who opted into the class action.  

Since the entry into force of the regime of class action proceedings provided for in Article 140-bis of the Italian Consumers’ Code in late 2009, Italy has adopted an opt-in model for class actions. According to both the current regime for class action and the newly adopted regime for representative actions, customers are allowed to opt into the class action in two different phases, namely: (i) immediately after the release by the Court of the order declaring the class action to be admissible, and (ii) after the Court has entered judgment on the merits of the case.

According to Italian law, a judgment on the merits of a case is binding on all customers who have joined a collective action. However, customers who opt into a class action do not become parties to the proceedings. It follows that, except for the cases provided for by Article 840 decies of the Italian Code (that, according to Article 140 novies of the Italian Consumers’ Code, also apply to representative actions) a judgment dismissing a claim brought in the interest of customers whose rights have been affected by illicit conduct of a defendant, cannot be appealed individually by each class member but only by the party who had initially brought the class action.

According to the ordinary regime for class action under Article 840-bis et seq. of the Italian Code, standing to start a collective action is conferred on each class of member whose rights have been affected by defendant’s illicit conduct, and non-profit or associations listed in the public registry kept by the Italian Ministry of Enterprises and Made in Italy.

Conversely, consumers are not entitled to bring a representative action on their own. Representative actions may only be brought by qualified entities, even without being previously mandated by consumers.

In particular, domestic representative actions can be started by (i) national associations of consumers or users included in the list referred to in Article 137 of the Italian Consumers’ Code, (ii) non-Italian entities designated by Member States to bring cross-border representative actions before the court of a Member State other than the one on which they were designated, and (iii) national independent public bodies referred to in Article 3, paragraph 6 of EU Regulation 2017/2394.

Cross-border representative actions may only be brought by national independent public bodies or consumer associations (or users) which comply with the requirements for the registration in the special section of the list referred to in Article 137 of the Italian Consumers’ Code as provided for by Article 140 quinquies of the Italian Consumers’ Code.

Multi-party actions in Ireland generally proceed by way of:

• Representative actions - where a number of cases have been filed by multiple parties who have the same interest in the underlying cause or matter, one or more parties may be selected (or authorised by the court) to sue or defend the case on behalf of all of the interested parties; and
• Test cases - where the same circumstances form the grounds of numerous individual claims and the court decides one case (or a select number of cases) first. The outcome of these “test cases” are then used to determine the outcome of the remaining cases. However, each case may still require its own hearing to determine the amount of damages.

Test cases tend to occur more regularly than representative actions as representative actions generally only arise where the parties have a pre-existing relationship with the lead party.

It is also worth noting the following specific provisions:

• A new piece of legislation (The Representative Actions for the Protection of the Collective Interests of Consumers Act 2023) was signed into law on 11 July 2023. This Act will provide the first effective framework for collective redress in Ireland allowing many low-value individual claims based on breaches of EU consumer law to be bundled together by a ”Qualified Entity” and litigated in a single action (known as a representative or class action) at both national and cross-border level; and
• The Irish Data Protection Act 2018 (which implements the GDPR) provides limited scope for representative actions whereby an action for breach of data protection rights can be brought on behalf of a data subject by a Not-for-Profit body.

There is no litigation structure similar to a class action in Japan.

However, the Act on Special Provisions of Civil Court Procedures for Collective Recovery of Property Damage of Consumers enables consumers to recover damages collectively in a simple and prompt manner. Claims brought under this Act must arise out of a contract concluded between a consumer and a business operator. In such claims, consumers are not able to claim certain losses, such as secondary losses, losses arising out of lost earnings, damages for personal injury/death, or damages for pain and suffering.

While class actions are not currently established in Luxembourg within a defined legal framework, progress is being made towards their introduction. Bill of Law 7650, submitted to the Luxembourg Parliament, aims to introduce collective recourse procedures in consumer law, aligning with the EU’s Consumer Rights Directive.

However, under the existing procedural rules in Luxembourg, a claimant is generally only allowed to sue for their own personal benefit to recover their individual losses. Nevertheless, there have been some court decisions recognizing certain legal entities' ability to bring claims on behalf of their members. For instance, the District Court of Luxembourg ruled in 2005 that a legal entity may sue for damages on behalf of its members if its constitutional documents explicitly authorize the entity to defend the interests of some or all its members in court proceedings. Similarly, in a 2007 judgment, the Court of Appeal confirmed the right of unions to protect the interests of their members through legal actions. In addition, certain limited organizations, particularly those focused on consumer protection, animal rights, and environmental protection, are permitted by law to bring damages claims in criminal proceedings when collective interests are at stake. While some organizations have standing to bring legal claims in the general public interest, their ability to effectively represent multiple victims remains quite limited. In the absence of a consistent body of case law or approval from the Court of Cassation, and until the Bill of Law 7650 on class actions is adopted by the Luxembourg Parliament, it is fair to say that class actions are generally unavailable under Luxembourg law.

 

In Kuwait, there is no concept of class action suits where one person may commence proceedings as a representative of numerous other persons; however, the civil procedures law of Kuwait does recognize the concept of a party joinder. Any person may join an ongoing litigation if that person has an interest that is relevant or related to the case. A joinder can be made either in accordance with the regular procedures for filing a claim before the hearing or by oral request to the judge during the hearing. Further, the judge has the discretion to join a party to a case if the judge determines it is just or necessary.

Class actions are recognized by the Mexican Constitution as collective actions. The federal courts have exclusive jurisdiction over these proceedings. The class action is appropriate for the protection of claims whose ownership corresponds to a collective of persons, as well as for the exercise of individual claims whose ownership corresponds to the members of a group of persons.

Dutch law has permitted collective action proceedings for about 30 years. In 2020, the Dutch collective action regime was rigorously modernized with the introduction of the WAMCA (Wet Afwikkeling Massaschade in Collectieve Actie). The WAMCA only applies to collective actions initiated after 1 January 2020 and that relate to an event or a series of events that occurred on or after 15 November 2016. This cut has been applied strictly by courts in several cases.

Contrary to the EU Representative Actions Directive, which only applies to infringements of EU consumer law, Dutch law does not pose any limitations on the types of claims that may be brought on a collective basis. For a collective action to be admitted, the courts will however assess whether:

• litigation through a collective action is more efficient and effective than individual proceedings;
• the factual and legal questions are sufficiently similar; and
• the represented group and their financial interests (if any) are sufficiently large.

Hence, there should be a collective element in any claim brought in a collective action.

The Netherlands does not have specialised courts for collective actions or collective redress proceedings; these are brought before the regular civil courts considering ordinary rules of jurisdiction and competence. Collective actions or collective redress proceedings are not limited to a particular type of conduct or cause of action. They can have both contractual and non-contractual bases.

The claiming entity should be a Dutch foundation (stichting), a Dutch association (vereniging) or an entity designated as a ‘qualified entity’ in another EU Member State. If more than one interest group wants to bring a class action regarding the same facts of the case, the court will appoint one of the interest groups as the exclusive advocate.

The interest group must have a supervisory body, an appropriate mechanism for decision-making by the individuals whose interests it represents, sufficient financial resources for the costs of the collective action, and sufficient experience and expertise for the collective action.

Collective actions brought under the new WAMCA regime bind any Dutch-domiciled member of the represented group, unless they actively opt-out. Non-Dutch-domiciled members of the represented group are only bound by the action if they actively opt-in.

Prior to initiating a collective action, the claiming entity should first try to settle the matter amicably. Observing a two-week period to allow for settlement negotiations suffices in any case. To initiate the collective action, the claiming entity should serve the writ of summons on the defendant(s) and register that writ in the public collective action register.

The rules regarding appeal in civil procedures are applicable for class action lawsuits as well. However, the WAMCA excludes the option to appeal in two specific situations:

• There is no possibility to appeal the court’s decision in appointing an exclusive advocate; and
• If a court refuses to approve a settlement agreement, this can only be appealed in cassation jointly by the parties.

In New Zealand, it is possible to bring a "representative" proceeding, or class action, where the proceeding is commenced by (or against) one person as a representative of numerous persons who have the same interest in the subject matter of the proceeding either with the consent of all represented persons, or with a direction from the court.

Class actions have historically been rare in New Zealand but are increasing.

The Law Commission has recently issued a report recommending that a specific legislative regime for class actions be put in place. The government has not yet confirmed whether or not it intends to act on this recommendation and introduce class action legislation.

Civil cases may be heard as a class action in Norway. A class action may be brought by or directed against a class if the claims have identical or substantially similar factual and legal bases.

A class action may be brought by a person who has a claim that falls within the scope of the class action. In addition, an action may be brought by an organisation, foundation or a public body responsible for advancing specific interests.

For the court to approve a claim to be heard as a class action, four requirements must be satisfied: (i) several legal persons have claims or obligations arising out of the same or substantially similar factual and legal bases; (ii) the claims can all be heard by a court with the same composition and in essence pursuant to the same procedural rules; (iii) the claims are most appropriately dealt with by way of a class action; and (iv) it is possible to designate a class representative.

If a court approves a claim as a class action, it determines the scope and whether it operates on an opt-in or opt-out basis. Under opt-in, parties have to register by a set deadline, while opt-out allows individuals to withdraw before a final court decision.

In class actions, the court appoints a class representative, which can be any eligible person, responsible for protecting the class’s rights and recovering potential costs. The court sets a maximum cost liability when approving the class action and may require an advance payment. Legal representation is usually required, but exemptions may be granted by the court.

Recently, the Supreme Court determined that opt-out proceedings pursuant to the Dispute Act do not allow for third party funding arrangements which have a condition that the company receives a return of three times their investment in case of success, to be claimed from the class’s awarded damages. It is up to the legislator to consider whether modifications to the Dispute Act should be made to enable the combination of opt-out lawsuits with external litigation funding through a reduction in awarded compensation.

Class actions are not recognized under Omani law or the Omani courts procedure.

Class actions (or group proceedings) are only permissible in the following areas: consumer protection, product liability, liability for the non-performance or improper performance of a contractual obligation, unjust enrichment, and tort cases where the claims arise from the same or a similar set of facts. Regional courts are competent to hear class actions in first instance. The conditions which must be met in order for a class action (group proceedings) to be admitted are as follows:

• the claims arise from the same or a similar set of facts;
• the claimants are claiming the same amount as other members in a certain group or sub-group;
• there are at least ten claimants; and
• the claimants are represented by counsel.

The role of the representative (who holds the sole mandate to institute class action proceedings) can be performed by a member of the group or a local consumer ombudsman. All members of the group must approve the person who will act as the representative. Members of a group in class action proceedings must directly express their wish to participate in the proceedings by submitting a declaration when joining the group (before the proceedings are instituted or during the second stage, while the group is being formed). A binding judgment is effective upon all members of the group and can only be appealed collectively by the group’s representative. However, those who have not joined the group, or who have left the group (the possibility of leaving the group is limited by certain time frames), can individually pursue their claims.

The timing and duration of the proceedings depends on the case complexity and number of claimants. Usually, class action proceedings are more lengthy than standard proceedings and last between 4 – 10 years.

Portuguese law allows collective actions to protect certain collective interests, such as public health or consumer rights. There is also a procedure that allows individual claimants to join their claims in a single proceeding.

All citizens are entitled to bring class actions, by themselves or through associations or foundations incorporated to defend the relevant interests. For example, the main associations for consumer protection actions are Deco and Ius Omnibus.

Class actions are based on an opt-out mechanism. This means that if the Court decides to certify a matter to be treated as a class action, those prospective claimants who do not wish to participate in the mass lawsuit must take positive steps to remove themselves from the class action on receiving notice of it - i.e., they must “opt-out” by giving notice to the Court that they decline to participate. Once a specified period of time has passed, all individuals who have not opted-out are considered to be part of the class action and the Court can hear their claims, even if they do not engage with the proceedings.

Class actions are not recognized under Qatari law or the Qatari courts procedure.

Romanian law does not provide for a specific procedure for class actions. However, multi-claimant litigation is possible in certain cases, where the object of the claim is a common right, or the claimants' rights have a common cause or a close connection. Moreover, certain bodies such as trade unions or consumer associations have the right to stand as claimant on behalf of multiple individuals in specific cases.

If a court is faces multiple claimants, the judge may direct them to select a common representative. If the claimants are unable to choose a representative, the court may appoint one on their behalf.

In Russia, the concept of class action and the respective procedure varies depending on the court: 

Class actions in state commercial courts 

Although class actions are provided for in the Arbitrazh Procedure Code of the Russian Federation, there are only certain limited circumstances when a class action may be brought in a state commercial court, these being:

• corporate disputes;
• disputes related to activities of the securities market professional participants; and
• claims of persons who are parties to the same legal relationship from which the dispute arose (e.g. disputes related to one land plot, claims of bank account holders to the defaulted bank, etc.).

In the above-mentioned cases, a group of persons may join the claimant acting on behalf of the group. At least five persons must join the claim in order for it to qualify as a class action (Article 225.10(2) of the Arbitrazh Procedure Code of the Russian Federation).

The state authorities (e.g. prosecutors or the federal service for protection of consumer rights) and organizations may bring claims “for the protection of the general public” (rather than in the protection of specific individuals).

However, in practice, the above-mentioned types of actions are not widely used in Russia.

Class actions in courts of general jurisdiction 

From 1 October 2019, individuals will be able to defend their collective interests through class actions in the most common disputes in areas such as consumer protection, labor relations, real estate, shared participation and construction. 

A class action may be brought by a selected representative of a group of at least 20 members with a similar claim or, if permitted by law, by another party (such as a public consumer association). Group members can change their representative, for example, if the representative decides to leave the group. 

Under the new rules a lawsuit will be considered if all of the following are present: 

• The same respondent
• Common or similar claims of persons comprising the group
• Similar factual circumstances
• The same method of protecting violated rights. 

Class actions fall under the exclusive jurisdiction of courts at the respondent's registered address in order to prevent forum shopping. 

Information on the filing of a class action lawsuit must be published in the media so that new claimants can join the lawsuit.

Generally speaking, class actions in Saudi Arabia are only permitted in respect of securities litigation pursued before a quasi-judicial authority that determines securities disputes, the Committee for Resolution of Securities Disputes (the "Committee"). For an applicant to submit a request for a class action, they must meet two requirements:

• the request shall demonstrate that the suit is identical to other potential or existing disputes "in terms of legal bases, merits and the subject matter of the claim"; and
• the request shall demonstrate that the decision of the Committee on the subject matter of the claim may have an effect on other potential or existing disputes.

Any interested party can submit a request for a class action to the Committee which shall make a decision as to whether to accept the filing of a class action within 30 days of its submission.

Once a class action application is approved and announced, the class action record will be made available to the public. The Committee certifies the class action once a minimum of 10 requests is reached within a period of 90 days from the announcement of the first request.

In Singapore, the main mechanism for group litigation is representative proceedings, where one or more people represent a larger group of people. However, representative proceedings are not common in Singapore.

Representative proceedings can be commenced without the approval of the court and there are no restrictions as to the type of claim or area of law. What is essential is that numerous persons must have a common interest in any proceedings before they can sue or be sued as a group with one or more of them representing the group. The ROC 2021 does not specify a minimum number of persons required, which appears to be subject to the court’s discretion.

The representative must obtain the written consent of all the members in the group to represent them in the action, and all of them must be included in the list of claimants or defendants (where applicable). Where there is a class of persons and all or any members of that class cannot be ascertained, the court may appoint one or more persons to represent the entire or part of the class, and all the known members and the class must be included in a list attached to the order of court. The court has the power to add or substitute parties in a representative action.

A judgment or order given in a representative action is binding on all the persons and class named in the list of claimants or defendants.

At present, there is no direct equivalent in Slovakia of the type of class action seen in the US. However, there is currently proposed legislation (No. 261/2023 Coll) seeking to reform laws regulating bulk actions for the protection of the collective interests of consumers. A bulk submission consists of at least ten submissions delivered to the same court by the same entity on the same day.

Slovakia’s current special regulation regarding bulk submissions requires the court to enter bulk submissions into the court registers at the same time, so as to preserve their continuity.

Slovakia also has a procedure whereby more than one entity (a “procedural community”) can be on the plaintiff’s or defendant’s side. There are three types of procedural community:

• a separate community, where separate rights and obligations are at stake and each person acts for themselves. Here, the court decides each claim and obligation separately;
• an indissoluble community, where the rights or obligations of the parties are so common that the judgment must apply to everyone who acts as plaintiff or defendant. The procedural act of one member of the community will apply to the others; and
• a compulsory community, where a special rule requires the participation of all the parties to a legal relationship in order for the litigation to proceed.

In terms of section 38(c) of the Constitution, a class action or a representative action, allows a person or persons to institute action on behalf of and in the interest of a group or class of persons, having the same defined issues of fact and / or law in common.

There is no legislation or specific rules of court that regulate class actions in South Africa. The Superior Courts have therefore used their inherent power to develop the common law and developed a procedural and practical framework for the initiation of class actions by a litigant. South African courts have also relied on class action jurisprudence in foreign jurisdictions, such as the United States of America, United Kingdom and Australia.

There is a two-stage process to institute a class action. Firstly, a certification application is required. Once certified, the matter then proceeds by way of trial action.

The South African Law Reform Commission has listed the following questions that must be asked to certify a class action:

• is there an identifiable class?
• is there a cause of action known?
• is there a similarity between the legal and factual issues?
• is there a suitable representative?
• is it of legal importance to institute the action?
• is there a suitable method to institute the action?
• is it possible to plead res judicata at the conclusion of the matter?

Our courts have developed the following seven factors that a certification court must consider when deciding where or not to certify a class action:

• The class must be identified by using objective criteria. In other words, the applicant for certification must define the class with sufficient objective precision so that the class members can determine their membership in relation to the class;
• There must be a cause of action raising a triable issue, which must be set out in the draft particulars of claim accompanying the certification application along with the relief sought;
• The right to relief depends on the determination of issues of fact or law, or both, that are common to all members of the class. Internationally, commonality is considered to be the key ingredient for any class action;
• The relief sought and damages claimed must flow from the cause of action and are ascertainable and capable of determination;
• If the putative class action is a claim for damages, there must be an appropriate procedure for allocating the damages to the members of the class at the end of the trial;
• The proposed representative must be suitable to conduct the action and represent the class; and
• Given the composition of the class and nature of the proposed action, a class action must be the most appropriate means of determining the claims of class members.

However, the Constitutional Court has confirmed that the overriding principle of whether a court may certify that a class action may be instituted is whether it is in the interest of justice to do so.

There is no limitation on what types of claims can be brought by way of class action, and it is not limited to certain areas of law. Class actions can endure for a few years, given the two-stage process and the amount of resources and documentation usually involved. They are often settled during or after certification stage (if successful) and before the trial action commences.

South Korea does not have a class action system, so each claimant seeking relief must file an individual action. The sole exception is the Securities-Related Class Action Act, which permits a class action to be filed by one or more class members after obtaining Permission for Class Action from the court.

The court will permit a class action if:

• the suit involves 50 or more class members;
• the total number of securities held by the class members is at least 1/10,000 of the total number of securities issued by the defendant company as of the time of the act that gave rise to the claim;
• the claims of the class members have common questions of law and/or fact; and
• the suit is an appropriate and effective means of realizing the rights of the class members or protecting their interests.

In Spain, a judge will consolidate claims where they refer to:

• the same judgment;
• the same defendant; and
• the same facts.

Where this is done, only one judgment will be provided. The parties will, however, be able to appeal the consolidated judgment individually.

With regards to the rights and interests of consumers and end-users, the legally constituted associations of such consumers and end-users shall have authority in court to defend:

• the rights and interests of the associations and their members; and
• the general interests of consumers and users.

When the aggrieved consumers or end-users can be easily identified, the parties with authority to act as claimants in the proceedings are:

• the associations of consumers and end-users;
• the entities legally constituted for the purpose of representing aggrieved consumers or end-users; and
• the aggrieved groups.

Where the aggrieved consumers cannot be easily identified, the parties with authority to act as claimants in the proceedings are exclusively those associations of consumers and end-users who can legally hold such representation.

In Sweden, class actions are heard by 21 designated District Courts, with at least one located in each county. Class actions based on environmental law are examined by one of the five District Courts that are designated as environmental courts. Disputes between consumers and business operators can be brought as group actions by the Consumer Ombudsman before the National Board for Consumer Disputes.

A class action may be filed by private individuals, organizations (in respect of consumer law or environmental law matters) and public entities such as the Consumer Ombudsman or the Environmental Protection Agency.

The prerequisites for initiating a class action include:

• that the group can be identified and defined;
• that the action is based on circumstances that are common for all the members of the group; and
• that a class action is appropriate.

There is no minimum number of claimants required before a group action can be brought. If the court finds that all of the above conditions are satisfied, the action will proceed as a group action under the Group Proceedings Act. Otherwise, the court will dismiss the action.

As of 8 December 2015, all courts, except the Municipal Courts (i.e. local district courts which handle small claims and minor criminal cases that may be dealt with by fines and penalties), have jurisdiction to hear and determine class action lawsuits.

Pursuant to the Civil Procedure Code of Thailand, the courts may consider a class action lawsuit to take place on the following:

• Cases involving a group of persons who have the same interests and rights;
• The claims are related to breach of contract, to tort, and any other laws including labour, environment, consumer protection, securities and stock exchange and trade competition;
• The class consists of numerous individuals and so to conduct a regular lawsuit would be impractical and complicated; and
• The assigned lawyer is to demonstrate their competency in protecting the rights of all members of the class.

The court has the authority to consider whether the class action should be heard, define the scope of a class or inquire or terminate the same. During this phase, if class members decide that the class action remedy does not best suit their needs, they have a period of forty-five (45) days to withdraw the class action.

The court proceeds to appoint a class action officer, who assists the court by conducting mediation, collecting and verifying evidence, meeting with witnesses and taking statements before and during the trial. From a procedural standpoint, the trial portion of class actions is similar to ordinary civil actions, whereby the same processes are used for mediation, the submission of evidence, hearing of witnesses and the delivery of a judgment.

A judgment binds all parties and members of the group. The plaintiff’s lawyers are also entitled for relief on legal fees and costs, not exceeding 30% of the award. However, historically, relief awarded for such fees by Thai courts, have been very low.

Upon the rendering of a judgment, the plaintiff (on behalf of the group) may file an appeal. There are no individual appeal rights. Such appeal can be made either to the Court of Appeal or to the Supreme Court as with regular proceedings.

There is no direct equivalent in the UK to the US-style class action, except in the competition context, which are managed by the Competition Appeal Tribunal. Nonetheless, there are a range of procedures available for non-competition collective litigation. These are as follows:

• Mass Claims: a number of claimants bring a claim together, where the claims can be conveniently disposed of in the same proceedings.
• Group Litigation: multiple claims arising from common issues of law or fact can also be managed together with the court’s permission under a group litigation order (known as GLOs).
• Representative Proceedings: in some cases, one or more claimants can also represent other claimants with the same interest in the proceeding.

A Scottish class action procedure, known as 'group procedure', was introduced on 31 July 2020. The procedure is an opt-in procedure and is only available in the Court of Session. It is governed by chapter 26A of the Court Rules. It allows two or more parties to bring joint proceedings if their claims raise issues of either fact or law which are the same as, similar, or related to one another.

Group proceedings are commenced by the preparation and service upon the defender of:

• a Summons (the initiating document setting out the claim);
• a Group Register identifying the claimants; and
• applications to the court for permission to bring group proceedings and for one of the claimants to be the representative party.

Service of the Group Register on the defender stops the clock in terms of time bar. However, certification of the action as a group action and certification of the representative party by the court are required to commence the action at court.

There are no restrictions as to the:

• Type of conduct or cause of action as grounds for group proceedings;
• Type of civil claim which may be brought under group procedure, although to date the procedure has been used to litigate ESG related claims, consumer rights claims and personal injury claims;
• Type of remedies available to claimants, although damages has been the most prevalent remedy sought so far; or
• Nationality or domicile of claimants. The same rules on jurisdiction will be applied as in regular Scottish court proceedings.

However, jury trials and punitive or exemplary damages are not available for group proceedings in Scotland.

Once a group action has been commenced a designated judge will be appointed. He or she will manage the case and have considerable discretion as to the best way of progressing it to a final hearing.

The Rules allow additional members to be added to the Group Register once the action is underway. A revised Group register must be lodged at Court and served on the defender, and notification of the changes given to all existing members, within 21 days.

In terms of settlement the Rules require that the representative party must “consult with” group members on the terms of any proposed settlement. However, in practice there is likely to be a contract in place between group members and the representative party which details how settlement decisions are to be taken.

Appeals can be made against any final order made by the court to the Inner House. The decision whether to appeal a final order or not is likely to be made on a collective basis for the reason outlined in the preceding paragraph.

Finally, the normal rules on costs apply to group proceedings in Scotland. Expenses typically follow success except in personal injury and fatal claims, where qualified one-way cost-shifting applies (the court will not make an award of costs against an unsuccessful claimant unless the litigation has been conducted inappropriately).

The DIFC and ADGM courts do not have any laws or procedures for class action proceedings. However, the DIFC and ADGM courts are empowered to make a Group Litigation Order to manage claims which give rise to common or related issues of fact or law. Such an order can also be sought by application.

A putative class action proceeding may be commenced by a named plaintiff as a representative of unnamed parties who have the same interest in the proceeding. Any class action in which total exposure exceeds USD5 million may be brought in federal court if the defendant and at least one of the class members are citizens of different states.

The named plaintiff (or class representative) must seek leave of the court to certify the class and proceed as a class action. To obtain class certification, the class representative must produce evidence of a sufficiently numerous class and demonstrate that common legal issues are shared on a class-wide basis, such that resolution of those issues would materially advance all members’ claims. Class members are not required to demonstrate identical claims or damages but must show sufficient commonality across the class that individual issues will not make a class proceeding unwieldy. Typically, a motion to certify a class is made following a period of discovery devoted to class issues, such as identification of the class members, common issues, and shared damages theories. An appeal of a class certification decision may be taken if permitted by the appellate court.

As a practical matter, most class actions in the United States are brought with the expectation of settlement. Common claims for class treatment include consumer protection, antitrust, securities actions, mass tort, and civil rights matters, in which individual damages are typically small (perhaps as little as a few dollars) but, in the aggregate, create significant liability exposure. Moreover, while individual class members may recover only small amounts, class counsel may end up recovering a large award of attorney’s fees. In any event, class actions typically proceed up until the class certification stage, at which point they are often dismissed or settled.

Once a class is certified, all individuals who satisfy the class definition become members of the class. Those individuals must be notified of their status as class members and given the opportunity to opt out of the class proceedings, or to object to any settlement. All class members who do not opt out will be bound by the judgment of the court or by any approved settlement.

Notable State Variations

• California: A denial of class certification is immediately appealable as a matter of right; and
• Texas: Orders granting or denying class certification are immediately appealable as a matter of right.