Consumers could win the right to direct action

23 January 2009



Britons may soon be able to take direct action against businesses which have treated them unfairly, following a resolution made in the European Parliament on 13 January 2009.

The Unfair Commercial Practices Directive, which was adopted in May 2005, aims to harmonise unfair trading laws in all European Union Member States and introduces a general prohibition on traders not to treat consumers unfairly. However, as the directive stands, there is no provision for a direct right of redress for consumers, meaning they are not entitled to bring a claim for damages against a trader who has subjected them to unfair commercial practices.

The recent decision requires countries which have adopted the Unfair Commercial Practices Directive in a way which denies people the right to direct legal action to amend their legislation. The Directive was implemented in the UK in May 2008 as the Consumer Protection from Unfair Trading Regulations.

In light of the decision in the European Parliament, consumers will ultimately be able to rely on a direct right "to ensure that they are sufficiently protected against unfair commercial practices" meaning that more people could now seek out legal advice when they have been subject to unfair practices as consumers.

Alex Jones, associate in the litigation and dispute resolution team, comments: "It is good news for consumers that they now have the legal right of redress against businesses that have treated them unfairly. However, it remains to be seen whether this will have a general impact on the levels of individual consumer litigation."

Whatever the challenge you are facing, we can help you keep control of the situation. We are able to advise on the best approach, whether it be litigation or mediation, to advance and protect your interests. For legal advice, please contact the litigation and dispute resolution team on 01753 279037 or email disputes@bpcollins.co.uk.

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