EU shies away from US-style class actions

Hopes for a US-style class action rule in the EU have been dashed with a very watered-down set of recommendations expected from the European Commission today.

Consumers organisation have criticised the draft proposals, saying it would do little to help the 5,000 victims of the PIPs breast implants scandal and other cross-border problems.

Many businesses and governments, including Ireland, have been arguing against EU-wide legislation that would give consumers more power to take cases against companies for defective products or services, saying it would lead to exorbitant payouts, as in the US.