Netherlands

The Netherlands has a sophisticated collective action regime.

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

Consumer actions; environmental, data and consumer protection.

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

Initiated by several representatives but led by one exclusive representative (similar to a lead plaintiff). After a “beauty contest” between different representatives, the court appoints an exclusive representative who acts in the interests of the entire group of persons whose interests the collective action concerns. Non-designated representatives may still remain parties to the proceedings.

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

Dutch residents can opt-out and non-Dutch residents can opt-in to join a collective action.

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

Tick

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

TickCross

 

Yes but 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?

TickCross

 

Yes, if they meet specific criteria.

Representatives can bring cross-border actions if there is a sufficiently close link to the Dutch jurisdiction. 

Is third party funding of litigation permitted?

Tick

Is litigation funding permitted for collective actions?

Tick

Yes, but the representative must show it has sufficient control over the legal action and therefore over any third party litigation funders.

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

TickCross

 

Consumer groups are allowed to advertise. Law firms are not allowed to advertise.

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

Tick

Yes, a collective settlement can be declared binding by the Amsterdam Court of Appeal.

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

Tick

The court may order additional publicity if it determines that ordinary publication is not sufficient.

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

Cross

The ruling of the court is binding on all affected parties who have not opted out. In case of non-compliance the general rules of Dutch civil procedure will apply.

 

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.

 

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.