- within Antitrust/Competition Law and Technology topic(s)
- with readers working within the Banking & Credit industries
On 25 November 2025, the law of 20 November 2025 introducing class actions into Luxembourg consumer law, including in the financial, banking, and insurance sectors, will enter into force. This law, which was discussed for over five years, aims to implement Directive (EU) 2020/1828 on representative actions and finally puts Luxembourg on par with its European neighbours.
Recent experience in Europe has shown that although the implementation of the directive has not had a disruptive effect, the number of cases brought by way of class action is increasing, given that it covers infringements of the provisions of not less than 66 EU directives and regulations, amongst others the UCITS Directive, AIFMD, MMFR, ELTIFR, MiFID and PRIPPS KID Regulation, including such provisions as transposed into national law.
Class actions aim to enhance access to justice by allowing multiple consumers to be represented in a single lawsuit by a single qualified entity (such as approved organisations, regulatory authorities etc.) against one or more professionals established in Luxembourg or active in its market. This new procedural tool does not impact consumers' rights and professionals' obligations, but it might make it easier to assert them. Class actions have the advantage of avoiding multiple claims. The law also puts an emphasis on alternative dispute resolution techniques by providing an optional mediation phase. The process is transparent, as the public is kept informed of ongoing class actions and the results obtained.
Initiating a class action presupposes that multiple consumers (at least two) in a similar or identical situation have suffered loss caused by one or more professionals. The consumer interests at stake may be considered at both national and European levels.
The purpose of the claims may be to obtain (i) measures to cease or even prohibit an unlawful practice , (ii) compensation for the resulting individual loss (whether material, physical, or moral), or (iii) both.
The Luxembourg legislator has provided for the Luxembourg District Court, sitting in commercial matters, to have jurisdiction over class actions. The procedure comprises several phases, including a decision on admissibility, optional mediation, a decision on the merits, consumer information under the supervision of a court-appointed liquidator, the opt-in/opt-out system, and individual compensation for damages suffered by each consumer under the supervision of a court-appointed liquidator.
Once the law comes into force, it will apply retroactively to class actions filed on or after 25 June 2023, which is the date of applicability provided for in Directive (EU) 2020/1828.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
