Sweden
Implementation of the European Directive on representative actions
Which national regulations transpose the Directive into national law?
Between July and October 2022, an Inquiry Report containing a proposal for implementation of the Directive was circulated for consultation (SOU 2022:42). The final proposition was submitted to the Swedish parliament in July 2023 (prop.2022/23:136). The parliament voted in favour of the proposal in November 2023, and the new law entered into force on the 1st of January, 2024 (Lag (2023:730) om grupptalan till skydd för konsumenters kollektiva intressen).
Who is entitled to bring a representative action?
Organisations and authorities which have been designated and registered as Qualified Entities in Sweden for the purpose of bringing domestic representative actions, and Qualified Entities which have been designated by an EU member state for the purpose of bringing cross-border representative actions and registered in the European Commission’s list of Qualified Entities, will be entitled to bring a representative action in Sweden.
Furthermore, the Group Proceedings Act (sw, lagen om grupprättegång) already allows for organisations to bring representative actions on an ad hoc basis under certain conditions. This legislation will continue to apply after the implementation of the Directive and organisations will thus be able to bring representative actions under the conditions laid down in this legislation, regardless of whether they have been designated as a Qualified Entity in the meaning of the Directive or not.
What can be the subject matter of a representative action?
A representative action may relate to violations of the EU law provisions indicated in Annex I to the Directive as well as provisions implementing or supplementing them. The representative action may be brought to seek either injunctive measures (e.g., a prohibition to continue the violation, an order to provide information, or other comparable measures) or redress measures (e.g., price reduction, reimbursement, or damages).
Which individual consumers are represented in a representative action?
The proposed legislation provides for an opt-in model where a consumer must notify the court in writing, within a certain time as decided by the court, that the consumer wants to be included in the representative action.
What will be the outcome of a representative action?
A judgement on a representative action for redress applies in relation to the consumers who are included in the action after giving notification as described above. The same applies if a settlement is reached and confirmed by the court by judgement. Depending on how the judgement is formulated, redress measures may either be awarded to the consumers separately, or to the entity bringing the representative action which will then be responsible for distributing it to the consumers (e.g., if damages are awarded).
Are there particular rules for the disclosure of evidence?
In general, the existing provisions on disclosure, view in court, and authorities’ investigative competences will apply in the same way as they do today in regard to representative actions.
Is third party funding possible?
Third party funding is allowed. However, the funder may not be dependent on, or be a competitor of, the defendant and may not influence the procedural decisions made by the entity bringing the representative action in a way which harms the common interest of the consumers included in the action.
Conclusion
Swedish law already provides for representative actions to be brought on behalf of consumers for violations of certain provisions. The implementation of the Directive will not affect any material provisions which companies and traders are already obliged to comply with. Although the proposed legislation will extend the possibilities to bring representative actions to a certain degree (e.g., by allowing actions against violations of a larger variety of provisions), it is thus not likely to lead to a major increase in such actions.
Contact
Jonas Löttiger
T: +46 732 561 380 E: jonaslottiger@eversheds-sutherland.se
Felix Perbo
T: +46 720 929 135 E: felixperbo@eversheds-sutherland.se
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.