Lithuania
Implementation of the European Directive on representative actions
Which national regulations transpose the Directive into national law?
The current regime used for representative actions is laid out in the Law Implementing EU and International Legal Acts Regulating Civil Procedure of the Republic of Lithuania, the Law on Protection of Consumers Rights, and other.
Who is entitled to bring a representative action?
Article 32 of the Law on the Protection of Consumer Rights stipulates that the right to bring a representative action for the protection of the public interest of consumers, requesting the termination or prohibition of an entrepreneur’s acts or omissions, shall be exercised by:
- the State Consumer Rights Protection Authority,
- an authorised consumer association,
- an organisation representing the interests of consumers,
- a state authority or other public entity designated by another Member State of the European Union to bring actions in accordance with Directive and specified by the European Commission in a list of competent entities published in accordance with this Directive,
- other entities specified in other laws of the Republic of Lithuania.
Where the representative action seeks other remedies for the protection of consumer rights, such as termination of contracts, damages, price reductions, etc., the right to bring such actions shall be exercised by the:
- authorised consumer association,
- a state authority or other public entity designated by another Member State of the European Union to bring such actions in accordance with Directive 2020/1828 and included in a list of competent entities published by the European Commission in accordance with this Directive,
- other entities provided for by the law of the Republic of Lithuania.
However, the court is entitled to assess whether the objectives of the competent body are compatible with the specific action. If it finds that they are not compatible, the court shall refuse to accept the application and shall leave the action pending.
What can be the subject matter of a representative action?
The subject matter of representative action is entrepreneur’s obligation to ensure the implementation of consumers right as established by the EU law or Civil Code of Lithuania (for instance, payment of compensation; termination of contract, refund of payment, etc.). Lithuanian legislation introduced by the Ministry of Justice provides a list of provisions of EU legislation the infringement of which causes or threatens to cause damage to the collective interests of consumers. According to the aforementioned list, representative actions and claims may relate to various sectors and legal issues (liability for defective products, unfair terms in consumer contracts, etc.)
Which individual consumers are represented in a representative action?
In Lithuania, an opt-in mechanism has been chosen for remedies – only those consumers who have made a declaration that they agree to representation can be represented and have the right to access remedies. The form of this declaration is approved by the Minister of Justice. The court, after accepting the application for remedies, shall publish on a special website, for the information of the consumers concerned, a notice of the possibility for consumers who are not named in the application to submit a statement of representation to the competent body.
What will be the outcome of a representative action?
If the claim is satisfied by the court, a remedy could be an obligation of the entrepreneur to enforce the consumer’s right under European Union law or the Civil Code of the Republic of Lithuania (e.g. payment of compensation, repairs, replacement of the goods, reduction of the price, cancellation of the contract, reimbursement of the price paid).
The court may, in the course of the preparatory proceedings, if it finds that an action has been brought by a competent person which is manifestly unfounded, decide, prior to the adoption of the order setting the case down for hearing, to declare that the action should be left unsolved.
The court which accepts the application for a remedy shall publish on a dedicated website, for the information of the consumers concerned, a notice informing them of the possibility for consumers who are not named in the application to make the submission to the competent body. Taking into account the subject-matter and the cause of action, the number of consumers whose collective interests are represented by the action brought and their distribution, the court shall, in the notice published, set a time limit of between 30 and 90 days for the filing of the notice.
Where a claim for remedies is upheld or the court approves a settlement agreement in respect of that claim, the court’s decision identifies the specific consumers who are entitled to benefit from those remedies.
The exercise of the remedies set out in the judgment does not affect the exercise of other remedies provided for by the laws of the Republic of Lithuania or the European Union, which were not the subject of the action.
Are there particular rules for the disclosure of evidence?
No. In Lithuania there is no concept of disclosure of evidence. General rules regarding evidence submission and acceptance as under Civil Procedure Code shall apply.
Is third party funding possible?
Yes. When third-party financing is involved in legal actions for remedies, measures must be taken to avoid conflicts of interest and protect collective consumer interests. The competent entity must ensure that decisions are independent of the financier’s interests and disclose the financing sources in the claim. If these requirements are not met, the court will set a deadline to rectify deficiencies or dismiss the claim. Financing by competitors or dependent parties of the defendant is prohibited.
Conclusion
The Directive is implemented in Lithuania. It is important to note that the Directive has broadened the range of remedies available to consumers. Previously, the collective interests of consumers were typically safeguarded by a single remedy—an injunction to halt or prohibit an action causing harm to consumers. Now, in a representative action, virtually all remedies provided by national law can be requested. For instance, a representative action can seek compensation, repairs, price reductions, contract termination, product replacement, reimbursement, and more.
Contact
Arnoldas Jobūbaitis
T: +370 5 239 2391 E: arnoldas.jokubaitis@eversheds.lt
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