At present Germany does not have a sophisticated consumer collective action regime.

What is the most common type of collective action you are seeing?

Consumer Actions.

What are the various ways a group could bring a collective action?

Filing of a collective action in front of court.

If collective actions are permitted, are these opt-in or opt-out actions?

Collective actions are subject to an opt-in mechanism by the individual consumer.

Does the law currently provide for private collective actions by consumers?

Under the German Model Declaratory action in the German Code of Civil Proceedings

If collective actions are permitted are the usual forms of relief permitted and can punitive damages be claimed?

The Model Declaratory judgment establishes the existence of a legal relationship in the form of a declaration. Once obtained the consumer then asserts a specific claim against the relevant company in a separate lawsuit. Only then can the usual forms of relief be obtained.

Punitive damages are not recoverable

Are bodies which represent consumers able to bring actions on their behalf? And if yes, can these bodies bring cross-border actions?

These bodies can bring cross-border actions as long as they are listed in the list provided for in Article 4 (3) Directive 2009/22/EC.

Is third party funding of litigation permitted?

Is litigation funding permitted for collective actions? 

Unclear whether litigation funding is permitted as there are contradictory court rulings on this issue. The German Federal Court of Justice (BGH) has ruled that third party-financed class actions to skim off profits are abusive of the law.  

Are consumer groups and law firms allowed to advertise the collective actions they are running?

The law is unclear on this issue. It has not yet been finally decided whether advertising is permitted.

Is there a formal mechanism to settle actions on a collective basis?

Approval of the court is required, and any consumer may withdraw from the settlement within a period of 1 month from the date of the delivery of the proposed settlement.

If a trader loses a collective action does the law require the trader to publicise this?

The judgment is published in the Complaints Registry by order of the court.

Is there a penalty for non-compliance with a final decision issued in respect of a collective action?

The consumer has to bring a separate action against the trader in order to benefit from the German model declaratory action. Only once a judgment is rendered, can enforcement against the trader begin. 

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.