New rules on actions in the area of consumer protection

Previously, consumers could already pursue claims against traders, including through group actions under the existing Administration of Justice Act.

The Act, implementing an EU Directive, strengthens consumer protection by allowing several qualified authorities and organisations representing consumer interests to bring new types of group actions against traders on injunctive measures and redress measures, such as claims for damages, price reduction, or reimbursement.

The rules cover actions against traders for violation of a broad range of Union law provisions, including data protection (GDPR), product liability, financial services, misleading marketing, unfair contract terms and passenger's legal rights.

Under the new rules, representative actions may now claim both injunctive and redress measures, broadening the previous framework where only injunctive measures could be pursued.

Moreover, qualified authorities and organisations can now bring opt-out actions for injunctive measures, meaning consumers do not need to actively join the case.  

However, for redress measures (damages, price reductions, or reimbursements), an opt-in model is required, with consumers needing to actively participate in the action. This is consistent with other group actions under Danish law. While the new rules do not change the Consumer Ombudsman's existing right to conduct opt-out proceedings under the Administration of Justice Act in certain cases, the right has yet to be exercised.

Redress actions brought by qualified organisations can now be financed by a third party, opening up the possibility of litigation funding.

Following the expanded provisions, particularly regarding redress and the potential for litigation funding, an increase in group actions and the extent of such actions is anticipated not just in Denmark but across the EU.

In particular, more claims for compensation related to non-financial damage, especially in the realm of data protection, are expected under these new rules.

Read the bill (in Danish)

Do you want to know more?

If you would like to know more, please contact Plesner's Dispute Resolution, Marketing and Consumer Law and Data Protection teams.