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August 9, 2018

ILR President: Consumers Are the Losers in EU’s Collective Action Proposal

In an op-ed for Politico EU, U.S. Chamber Institute for Legal Reform President Lisa Rickard warns against instituting U.S.-style class action lawsuits in the European Union. Rickard points out that the current draft of the European Commission’s proposal on representative actions would do just that, even though ILR research indicates only 13 percent of EU consumers support this proposal as written.

Rickard goes on to say that the proposal is missing almost all of the safeguards the Commission itself recommended in its 2013 report on collective actions. Among other things, this lack of safeguards would allow consumers to be included in class action lawsuits without their knowledge or consent, sometimes without the possibility of “opting out.” Rickard concludes that passing this proposal into law would bring the worst elements of the U.S. class action system into Europe and leave the door wide open to abusive litigation.

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