- The LexCultura Foundation has been granted the right to bring action in group proceedings in cases involving practices that violate the general interests of consumers.
- In court proceedings, it will be able to demand that the entrepreneur cease and desist unlawful activities and provide specific benefits to consumers.
- The President of UOKiK encourages other organisations to apply for entry in the register of qualified entities and to represent consumers in group proceedings.
“Representative action” is a new instrument for pursuing claims in group proceedings, introduced into Polish law in 2024 as a result of the implementation of Directive 2020/1828 of the European Parliament and of the Council. Its aim is to increase the effectiveness of consumer protection. Misleading advertising, unauthorised increases in charges or unclear promotional rules are just some of the examples of cases in which authorised organisations will be able to represent consumers in a court of law. The condition is that certain requirements must be met and that an entry is made in the register kept by the President of UOKiK.
Until now, the only entity in the register had been the Financial Ombudsman, entered ex officio.
The first consumer organisation
The President of UOKiK has entered the LexCultura Foundation into the national register of entities authorised to bring action in group proceedings. It is the first non-governmental organisation to meet the requirements and obtain such authorisation. The entry enables it to represent consumers before common courts. Cases must relate to specific sectors which fall within the organisation’s activities, e.g. e-commerce and retail, tourism, real estate and development services, recreational, cultural and sports services, or education and training services.
– Entry in the register of qualified entities means the right to bring action in group proceedings. The welfare of consumers is a key value, which is why we comprehensively analyse whether a given entity meets the criteria of professionalism and independence. I encourage applications for entry in the register and active support for consumers in group proceedings – says Tomasz Chróstny, President of UOKiK.
In group proceedings, a qualified entity may request a determination that a practice infringing the general interests of consumers has been applied and an order that its application be discontinued. If at least 10 injured parties are gathered, an action may be brought and specific benefits for consumers may be demanded from the entrepreneur, e.g. reimbursement of a specific amount, replacement of the purchased item or dissolution of the contract.
National proceedings – how to become a qualified entity?
Basic legal requirements. An entity applying for registration must be a legal person and, pursuant to its articles of association, must be engaged in consumer protection. It must also have conducted non-profit activities for the protection of consumer interests for at least 12 months prior to submitting the application for entry in the register kept by the President of UOKiK. It is also necessary to ensure independence, prevent potential conflicts of interest and not be subject to the influence of other entities, in particular entrepreneurs who could derive economic benefit from bringing an action within group proceedings.
Procedural requirements. Entities applying for entry in the register must submit an application to UOKiK on a special form. It includes, among others, a detailed description of the organisation’s activities, including sources and methods of financing, a description of the rules of operation in relation to the proceedings covered by the application, as well as information on any fees charged to consumers in connection with their participation in group proceedings.
Cross-border proceedings
In addition to the national register of qualified entities, there is also a list maintained by the European Commission. Entities are submitted to this list by UOKiK. They are authorised to conduct cross-border group proceedings.
Qualified organisations and institutions entered in the list, designated in any EU Member State, may bring a class action before a Polish court, and a Polish qualified entity may do so in any EU Member State.
Transparency of activities
A qualified entity is required to post on its website detailed information on the rules for bringing action within domestic or cross-border group proceedings, including any fees related to a consumer joining the group.
Entities are also required to submit an annual report on their activities in respect of actions within group proceedings to the President of UOKiK. This is intended to enable further verification of the independence of the relevant qualified entity and to confirm its ability to conduct its activities properly.
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