The European Collective Redress Debate after the European Commission's Recommendation

Abstract

The paper examines, through the prism of the European Commission's Recommendation, the European approach on collective redress. First, it demonstrates that the introduction of collective redress in respect of small claims is necessary and the opt-out scheme is preferable. Second, it refutes the major arguments and fears against the opt-out system. Third, it demonstrates that the pivotal question of collective redress is financing and the law should provide a risk premium to the group representative.