France’s existing framework for group actions is characterized by its complexity and limitations, resulting in only a handful of cases being initiated, with merely one leading to a final judgment of liability against a defendant. This situation is poised to change, as the French legislature is expected to soon come to a consensus on a bill that will finally incorporate the EU Representative Actions Directive into national law.
Due to ongoing disagreements between the two legislative chambers, the French legislature is already a year behind schedule in enacting a national law in accordance with the EU Directive. Until such legislation is passed, various group actions and litigation funding initiatives remain in limbo. A comparable scenario unfolded in the UK four years ago when the entire sector awaited the Supreme Court’s decision in Merricks v MasterCard, after which a surge of cases was subsequently filed.
In December 2022, the Assembly commenced deliberations on a draft bill aimed at addressing the deficiencies in the regime’s consumer protection framework, in accordance with the EU Directive. This bill proposes to broaden the categories of groups eligible to initiate legal actions and grants courts the authority to impose substantial fines on particularly egregious defendants. Prior to the enactment of this legislation, the chambers must establish a joint committee tasked with formulating a compromise text, which will subsequently be presented to both chambers for further voting.
Currently, the 2014 French legislation remains in effect. This law restricts legal actions to low-value, opt-in consumer lawsuits that are limited to claims for material damages and can only be initiated by government-recognized consumer organizations and labor unions. Among the just 35 cases filed under this law, 25 are still in progress. Three cases were dismissed based on their merits, while three others settled. Additionally, two cases were deemed inadmissible, and one was withdrawn. The sole case that culminated in a final ruling involved the major pharmaceutical company Sanofi in 2022, concerning the adverse effects of a particular medication.
