Has your bank, real property developer or travel agency applied contractual clauses entered into the Register of Abusive Clauses? Has it exposed you to financial loss? Since 19th July, pursuing claims on such occasions may become easier as provisions regarding pursuing claims in group proceedings come into force

The instrument of class action developed in the United States. The European Commission is also pointing out the need to introduce collective redress into the legislation of individual Member States. Such legislation is already binding in several EU Member States, including Austria, France, the Netherlands, Spain, the United Kingdom, Germany, Italy and Sweden. Since 19th July, when the Act on pursuing claims in group proceedings became effective, also Poles have enjoyed the right to file a group action.

Pursuant to the new law, class action will be possible for a group consisting of at least 10 persons, both consumers and undertakings. The new legislation shall cover claims concerning the violation of consumer rights, damage caused by dangerous products as well as torts, except for claims related to protection of personal rights, such as bodily harm or damage to reputation. In the event of financial claims, the amount required by each claimant must be identical; unification may occur also in subgroups of at least two persons.

The action is brought by a representative of the entire group - either a group member, or poviat or municipal consumer ombudsman, acting within his statutory tasks. Moreover, it is necessary to appoint a proxy – an attorney-at-law or a legal advisor, unless the representative has relevant qualifications. The lawyer’s remuneration can cover the maximum of 20% of the amount of compensation awarded by the court to the claimants.

The statement of claim should include i.a. application for class action status and specification of the amount of claim of each claimant. Moreover, declarations of group members on acceding to the group and the agreement with the proxy that regulates the method of his/her remuneration should be attached to the statement of claim. The cost of filing the statement of claim constitutes 2% of the value of the subject-matter of dispute, yet not less than PLN 30 and not more than PLN 100,000. Additional costs may be incurred, when at the defendant’s request, the court requires that the claimant should submit a security deposit for the costs of the proceedings, yet not exceeding 20% of the value of the subject-matter of dispute. In such case, the claimant will have to deposit an appropriate amount in cash. It is worth considering that the procedural costs shall be borne by the losing party, thus if consumers win the case, the sources will be refunded.

The claimant must publish at his/her own expense information on the pending proceedings in a nationwide newspaper. The notice should include i.a. the name of the court considering the case, parties to the proceedings, information about the subject-matter of dispute and on the possibility to join the group within a specific deadline, however no longer than three months from the date of publication of the notice, after which date no one can accede to the group. The only exception are persons who independently filed the statement of claim in identical case. Such persons may join the group no later than the date of termination of the first instance proceedings. Persons whose names have been entered into the list approved by the court cannot withdraw from the group.

Class actions may serve as an an additional tool for consumers and undertakings whose rights have been violated through application of anticompetitive practices, such as damages resulting from long-term price fixing or abuse of a dominant position of a competitor. In such cases, decisions of the President of the Office of Competition and Consumer Protection may be crucial.

One should keep in mind that the court at any time may order to settle the case by way of conciliation. Moreover, unless the court objects, in the course of proceedings, upon the consent of more than half of the members of the group the statement may be withdrawn, renounced or limited and settlement can be made.

Before the case is heard, it is advisable to settle the dispute with undertaking by way of conciliation. The Office of Competition and Consumer Protection reminds that poviat or municipal consumer ombudsmen provide free of charge assistance in claiming consumer rights. Free advice is also rendered by the Association of Polish Consumers under telephone number 800 800 008 800. Consumer counselling in Poland is financed, inter alia, from UOKiK’s budget.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańcow Warszawy 1, 00-950 Warszawa
Tel.:(+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl