EU: Group lawsuits to recover losses should be allowed

CONSUMERS who suffer food poisoning from contaminated products that breach EU safety standards or people overcharged for services by price-setting cartels should be able to take class-actions to recover their losses, according to the European Commission.

They estimate consumers lose out on more than €20 billion a year in compensation from price-fixing and similar arrangements by cheating firms.

However, US-style multi-million euro compensation is being ruled out by the commission, which wants legislation that will compensate people for what they have lost rather than to penalise business.