Renewed Interest In French Class Actions?

Author:Mr Ozan Akyurek, Françoise Labrousse, Emmanuelle Rivez-Domont and Olivier Haas
Profession:Jones Day
 
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The Situation: Class actions (action de groupe) were implemented in France in 2014. Three-and-a-half years after its entry into force, the French class action has not met the expected results.

The Result: Only a few class actions have been filed so far, and the length of the proceedings does not allow us to have a good overview of the success of this mechanism.

Looking Ahead: The first French class action, which was brought in 2014 against Foncia, a property management company, should come to an end soon: in the case of success for consumers, the attractiveness of class actions will certainly increase.

The main aim of the Consumer Act No. 2013-344 of March 17, 2014, adopted on the initiative of former French Minister Benoît Hamon, was to strengthen consumer protection by offering consumers a new legal mechanism: the class action (action de groupe).

Currently regulated by articles L.623-1 et seq. of the Consumer Code, the class action "à la française" allows approximately 15 nationally certified consumer associations to bring before civil courts claims for damages suffered by at least two consumers and that are caused by a professional's failure to fulfil its statutory or contractual obligations.

The French class action was initially designed to defend only consumer rights. However, it has been rapidly extended to other areas such as discrimination (in particular at work), environment, personal data and health.

While broadening its scope has increased the enthusiasm of the supporters of the class action mechanism, it did not have the expected impact on consumer disputes.

A report published by the French Court of Auditors on December 18, 2017, underlines that the number of class actions brought before French courts is still low (less than 10 as of today), and no significant case law has yet stood out more than three years after its entry into force. According to the report, class action proceedings prove to be particularly long and therefore tend to dissuade consumers from bringing them.

A previous report published in October 2016 by the National Assembly's Committee on Economic Affairs provides more information on the reasons for the class action's shortcomings. This report gave an update on the situation two years after the entry into force of the Consumer Act, and it highlights five major implementation difficulties that may explain the limited success of the class action: (i) limited number...

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