The Representative Actions Directive (Directive (EU) 2020/1828) introduces a harmonized framework for consumer collective redress across the European Union. Designed to strengthen consumer rights enforcement, the directive empowers qualified entities to bring representative actions on behalf of consumers, especially in mass harm situations.
Although the directive officially came into force in 2023, EU Member States had until the end of that year to transpose it into national law. Malta launched its public consultation on the directive’s implementation late in the year — closing on the 25th of November — and it remains unclear whether the required legal framework will be adopted on time.
Malta’s Existing Legal Framework
The concept of collective redress is not new to Maltese law. The Collective Procedures Act (Chapter 520 of the Laws of Malta) already allows for collective actions. However, the new legislation implementing the Representative Actions Directive aims to carve out competition claims from the existing act and handle consumer redress separately under a new legal framework.
Whether this bifurcated structure will fully comply with the directive remains an open question and one that legal practitioners are watching closely.
In Malta, the competent authority for consumer affairs is the Consumer Affairs Diretorate within the Malta Competition and Consumer Affairs Authority.
Methodology and Key Features
A key departure from the American class action model is the EU’s emphasis on safeguards against abusive litigation. Instead of a lead plaintiff representing a class, the Representative Actions Directive mandates that only qualified entities — typically consumer organizations or public bodies — may bring forward such claims.
These entities must meet strict criteria to be eligible for cross-border claims, as defined in a checklist by the European Commission. Domestic-only actions may require less stringent qualifications but still need to reflect the directive’s principles.
To mitigate the financial burden of litigation, the draft Maltese Bill proposes an exemption from court registry fees and reduced fees for unsuccessful claims. However, concerns remain about whether local consumer organizations possess the resources and manpower to file and follow through with complex claims.
Funding and Participation Challenges
Access to adequate funding remains a significant obstacle. Many Maltese organizations lack not only financial resources but also the human capital — particularly younger legal professionals — required to lead large-scale litigation efforts.
Malta is also opting for an opt-in mechanism, meaning consumers must actively choose to join a representative action. This raises additional concerns about consumer engagement, especially when the potential compensation is relatively modest.
Public Consultation and Legal Community Reactions
The public consultation revealed a variety of perspectives, many of which highlight both support for the directive and concern about Malta’s readiness to implement it effectively. Historically, Maltese courts have interpreted collective redress provisions liberally, but the new legal framework may narrow that flexibility.
Legal Training and Awareness
In response to the upcoming legal changes, I am hosting a seminar series this week focused on the Representative Actions Directive, its objectives, and Malta’s proposed implementation model. These sessions will explore legal, procedural, and operational aspects of the directive, offering insights for both practitioners and policymakers.
Conclusion
The Representative Actions Directive signals a significant shift in EU consumer protection enforcement. Malta’s approach to implementation — balancing existing mechanisms with new legislative structures — will play a pivotal role in shaping how collective redress is accessed and delivered locally.
As these developments unfold, it is essential for legal professionals and stakeholders to remain engaged, informed, and prepared to adapt to the evolving regulatory landscape.