Italy has a sophisticated collective action regime.

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

Under the old rule class actions for damages were only for consumers; under the new one (in force since 19 May, 2021) the scope is general and mainly labour disputes are coming in. Non-class collective (injunctive) actions have also been common in public law disputes.

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

Associations can file injunctive actions; individuals can file both injunctive actions and class actions for damages.

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

Opt-in, both before and after the finding of liability.

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

The law allows different types of collective actions, not just consumer.

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

All forms of relief are available but punitive damages cannot be claimed.

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

The names of the bodies which can bring actions for consumers are included in a government list. Cross-border actions are permitted.

Is third party funding of litigation permitted?

There is no general prohibition; however class actions are struck out when there is a conflict of interest.

Is litigation funding permitted for collective actions?

Apart from third-party funding (see above), this is not straightforward. The new rules allow some limited fee-shifting but the amount must be proportional to the damages awarded. In addition, under the new rules class members who opt-in must pay to the lawyer a sum determined by the court for the expenses of the litigation, but it is not yet clear how that sum should be managed. 

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

Only consumer groups can advertise.

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

Under the new rules, a proposal for a global settlement negotiated after the finding of liability by the defendant and a representative of the group chosen by the court (who must be an independent professional, different from the class lawyer and also from the class representative in the preceding stage, who must be a class member: see above), and approved by the court, is binding for the class members who opted in, unless they expressly and timely reject it; otherwise a settlement binds only those who explicitly accept it.

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

If the court requires it.

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

In accordance with general rules of the court, penalties apply to defendants who do not comply with injunctions.

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.