The Law of 20 November 2025, notably amending the Consumer Code (link to the law: Legilux public), transposes the Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers into Luxembourg law, repealing Directive 2009/22/EC. It entered into force on 25 November 2025 and applies retroactively to collective redress proceedings (class actions) initiated on or after 25 June 2023, being the date on which Directive 2020/1828 became applicable.
Class actions are now set out in the new Book 5 of the Consumer Code at Articles L. 511-1 et seq. They may be initiated before the courts where the individual interests of several consumers, who are in a similar or identical situation, have been affected and have suffered loss caused by the same or by several traders:
A class action may be brought to stop or prohibit such breaches, to establish the liability of the trader that caused the damage to obtain compensation for the loss suffered, or to pursue both objectives.
A class action may be initiated solely by qualified entities as defined in Article L. 511-4 of the Consumer Code (such as, for example, the Commission de surveillance du secteur financier or the Directorate of Health), to the exclusion of natural persons. It must be brought before the District Court of and at Luxembourg sitting in commercial matters.
On pain of ity, the writ of summons must expressly state: (i) the individual cases put forward by the claimant (the qualified entity) in support of its action; (ii) a description of the consumers covered by the class action; and (iii) the measures sought. In addition, the qualified entity must also disclose its sources of funding in a separate document to demonstrate that no conflicts of interest exist.
The court assesses the admissibility of the action in light of the criteria set out in Article L. 521-1 of the Consumer Code, namely: (i) the grounds relied upon constitute a potential or actual breach by the trader of its statutory obligations, established by a final decision; (ii) the action is brought by a claimant with standing; (iii) multiple consumers are affected; and (iv) the claimant is free from any conflict of interest.
A judgment ruling on admissibility or inadmissibility sets out the publicity measures necessary to inform consumers. A final decision on admissibility or inadmissibility is published in full on the website of the ministry responsible for consumer protection.
The Law of 20 November 2025 provides that the general principles of civil and commercial mediation apply where the parties decide to have recourse to mediation. The new law specifies the mandatory, comprehensive content of the mediation agreement, which must be approved by the court.
If the parties do not reach a mediation agreement within the time limits and under the conditions set by the court, or if they decide not to use the mediation process, the court resumes its examination of the class action. In actions seeking compensation for loss, the court assesses the trader’s liability based on individual circumstances. It identifies the group of consumers in respect of whom the trader’s liability is triggered, the categories of compensable loss, and the applicable opt-in or opt-out system.
The court appoints a liquidator responsible for carrying out all measures necessary for the proper implementation of the judgment on liability or of the court-approved mediation agreement, as the case may be.
In class actions seeking only to stop or prevent a breach, the court, if it finds that a breach has occurred, issues a judgment prohibiting the trader from committing the breach, or ordering it to cease or to procure the cessation of the breach. It will order the trader to take all necessary measures, within a specified timeframe, to end or prevent the breach, whether provisionally or definitively, subject to a penalty payment, and, if needed, with the assistance of a court-appointed third party.
Where the class action seeks both compensation for loss and cessation or prevention of a breach, the court, upon finding a breach, first issues a separate judgment prohibiting the trader from committing or continuing the breach, and to take all necessary measures useful to end or prevent it, within a specified timeframe, whether provisionally or definitively, subject to a penalty payment, and, if needed, with the assistance of a court-appointed third party.
For class actions seeking compensation for loss, the liquidator submits a final report to the court once the affected consumers have been compensated by the trader.
For class actions seeking only the cessation or prohibition of a breach, any failure to comply with the injunctions or prohibitions contained in a final judgment is punishable by a fine ranging from EUR 251 to EUR 50,000. If the facts addressed in the final judgment constitute a criminal offence, the applicable fine increases to between EUR 251 to EUR 120,000.
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The above outlines the principal mechanisms of class actions introduced into the Consumer Code and does not constitute an exhaustive summary of all amendments made by the Law of 20 November 2025. Despite the delay in transposing Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers, repealing Directive 2009/22/EC, this legislative reform constitutes a significant milestone in modernising consumer protection in Luxembourg and bringing national procedures into line with European standards on collective redress.
At the first constitutional vote on the bill on 30 October last, the Chamber of Deputies highlighted that experience in other Member States shows that implementing class actions poses substantial challenges concerning effective access to justice and procedural complexity. It therefore invited the Government to carry out, within five years of the Law’s entry into force, a comprehensive assessment of the implementation of class actions in Luxembourg in order to assess their effectiveness and identify any legislative adjustments.