All market participants will have an opportunity to seek collective redress against unfair enterprises. A draft Act on pursuing claims in group proceedings is now under interministerial consultations.

The instrument of class action was first developed in the United States. Similar mechanisms were later adopted in Canada and Australia. The European Commission is also pointing out to the need to introduce collective redress into the legislation of particular member states. Such provisions already exist in several European Union countries (including Austria, France, the Netherlands, Spain, the UK, Germany, Italy and Sweden), and they are being implemented in other countries, including Poland.

Regulations currently in force in Poland make it possible to pursue damage claims before court effectively. However, long-lasting, formalised proceedings and their costs are often a disincentive - especially for the weaker market participants - to taking legal action against unfair enterprises. Surveys show that over 70% of the European Union residents would decide to take such a step if they could seek collective redress.

The Act on pursuing claims in group proceedings drafted by the Ministry of Justice provides for such a possibility. The new law will enable all market participants to file a group action. The group will have to consist of at least 10 entities - there will be no upper limit as to the number of claimants. The group will be represented by either one of its members or a local consumer ombudsman.

The draft Act is now at the stage of interministerial consultations. The Office of Competition and Consumer Protection supports the introduction of group action as a tool for obtaining more effective redress in cases where the value of individual claims is low and when more complex hearing of evidence is required. Also, possible financial savings will undoubtedly constitute an incentive for consumers to file a group action as the costs of proceedings will be incurred by all members of the group proportionally while at present each aggrieved person has to file a claim, pay a court fee, appoint and pay for a legal representative individually. Once in force, the new Act will also be beneficial for the Polish judicial system. It will save time (relieving courts from the necessity to carry out several similar proceedings) and money (one hearing of evidence will be required only). Moreover, rulings in similar matters will be uniform.

At the same time, according to UOKiK, other entities (apart from consumer ombudsmen) whose statutory tasks include protecting weaker market participants and organisations of enterprises should perhaps also be given right to act as a group’s representative. The Office has also reservations as to the requirement stipulating that a claimant may only be substituted by an attorney-at-law or a legal advisor - especially in a situation where a group’s representative is a consumer ombudsman, who is a professional appointed to take actions in the scope of weaker market participants’ protection.

From the perspective of the Office of Competition and Consumer Protection’s area of responsibility, it is essential for group actions to allow for a more effective pursuing of damage claims resulting from infringements of competition law. Representatives from the European Commission, academic circles, government administration and bar associations who deal with competition law participated in a debate organised by UOKiK and devoted to the issue of private enforcement. The meeting was related to the publication of the European Commission’s White Paper on damages actions for breach of the EC antitrust rules. The participants of the debate had a chance to learn about the results of the public consultation on the White Paper and the legislative plans concerning private enforcement.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]