The EU has now published its long-awaited draft proposal to create a means for EU consumers to get compensation through collective redress actions. This effectively creates the right to bring something similar to US style class actions for breaches of consumer law and other legislation such as product safety and labelling. The purpose of the new directive is to modernise the existing collective redress mechanism available for breaches of consumer law and ensure that consumers are effectively compensated The new legislation significantly increases the risk associated with not complying with consumer law.
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