Representative Actions on the table at the Regulatory Committee virtual meeting

Led by Dr Gábor Orosz (NI), Chair of the Regulatory Committee, a virtual meeting was held today (June 10, 2021) on a new EU Directive on consumer representative actions entered into force at the end of last year. Dr. Balázs Karsai (Nagy & Trócsányi Law Firm) presented the main elements of the regulation and its potential risks.

The EU Directive on Representative Actions creates a form of class action, and leaves many of the implementation details up to the Member States’ discretion. Several Member States have already started working on the implementation of the Directive, the same is expected to happen soon in Hungary too. The implementation deadline for EU member states is December 25, 2022.

Balázs Karsai

We had been contacted by the Institute for Legal Reform (“ILR”, an affiliate of the U.S. Chamber of Commerce) earlier in connection with this Directive as well, and ILR raised a number of issues which merit careful consideration as they pose potential risks to our members, such as e.g. concerns of abusive litigation and excessive disclosure (discovery) requests, reputational risks, the new class action’s relation to pre-existing forms of collective actions etc. These and other issues were put on the table during the online presentation by Balázs Karsai, in order to raise awareness and initiate consultations among our members.

Please, find the presentation using this link

directive

Members thanked Balázs for the attention-grabbing presentation and agreed to continue the discussion on the topic in a proactive way before the Directive will be transposed into the national law.

As another agenda item, Dr. Balázs Fazekas (Invitech) informed the Regulatory Committee members on the status of the proposal related to the digital signature that was elaborated by a team of the Committee. Dr. Gábor Orosz expressed gratitude to the team, especially Dr. Ádám Liber and Dr. Tamás Bereczky (Provaris), and Balázs for the excellent job. The proposal is addressed to the Ministry of Justice, and we hope to have a chance for a consultation on further actions.