The Law of 20 November 2025, notably amending the Consumer Code (link to the law: Legilux public), transposes into Luxembourg law 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 and repealing Directive 2009/22/EC. Entering into force on 25 November 2025, it applies (retroactively) to collective redress actions (class actions) initiated from 25 June 2023 (the date of applicability of Directive 2020/1828).
The class action has been incorporated into a new Book 5 of the Consumer Code at Articles L. 511-1 et seq. It may be brought before the courts where the individual interests of several consumers placed in a similar or identical situation have been affected and have suffered loss caused by the same or multiple traders:
The class action may be brought either to bring such breaches to an end or to prohibit them, or to establish the liability of the trader that caused the damage in order to obtain compensation for the loss suffered, or to pursue both objectives.
The 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 concerned by the class action; and (iii) the measures sought in the action. The sources of funding of the action brought by the qualified entity must also be disclosed in a separate document to demonstrate the absence of conflicts of interest.
The court rules on the admissibility of the action having regard to the conditions set out in Article L. 521-1 of the Consumer Code, which are as follows: (i) the grounds relied upon constitute a potential breach or a breach established by a final decision of the trader of its statutory obligations; (ii) the action is brought by a claimant with standing; (iii) a plurality of consumers is concerned; (iv) the claimant is not exposed to a conflict of interest.
The judgment on admissibility or inadmissibility determines the publicity measures necessary to inform consumers, and the 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 specifies that the general principles of civil and commercial mediation apply where the parties decide to have recourse to mediation. The mandatory content of the mediation agreement, which must be comprehensive, is set out by the new law and the agreement must be approved by the court. The fees of the mediator, who must be an accredited mediator, are borne by the State budget, which constitutes an incentive to amicable settlement.
If the parties do not reach a mediation agreement within the time limits and under the conditions set by the court, or if they have decided not to use the mediation process, the court continues its examination of the class action. Where the class action seeks compensation for the loss suffered, the court rules on the liability of the trader on the basis of the individual cases. It defines the group of consumers in respect of whom the trader’s liability is engaged, the categories of loss capable of being compensated, and the applicable opt system, which may be by inclusion in the group (opt in) or by exclusion from the group (opt out).
The court appoints a liquidator who will carry out all steps and tasks necessary for the proper implementation of the judgment on liability or of the court-approved mediation agreement, as the case may be.
Where the class action seeks only the cessation or prohibition of a breach, the court, if it finds that a breach exists, issues a judgment prohibiting the trader from committing the breach or ordering it to cease or to procure the cessation of the breach and to take, within a time limit it sets, all measures useful for that purpose, whether provisional or final, subject to a penalty payment, and if necessary with the assistance of a third party designated by the court.
Where the class action seeks both to engage the trader’s liability for the loss suffered and to obtain cessation or prohibition of a breach, the court, if it finds that a breach exists, first renders a separate judgment to prohibit the trader from committing the breach or to order it to cease or to procure the cessation of the breach and to take, within a time limit it sets, all measures useful for that purpose, whether provisional or final, subject to a penalty payment and, if necessary, with the assistance of a third party designated by the court.
As regards a class action seeking redress for loss suffered, the liquidator submits a final report to the court once the consumers concerned have been compensated by the trader.
As regards a class action seeking solely the cessation or prohibition of a breach, any failure to comply with the injunctions or prohibitions contained in a judgment that has become final is punishable by a fine of EUR 251 to EUR 50,000. Where the facts covered by the final judgment may be categorised as a criminal offence, the fine is EUR 251 to EUR 120,000.
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The above developments summarise the principal mechanisms of the class action introduced into the Consumer Code and cannot be regarded as an exhaustive summary of all amendments made by the Law of 20 November 2025 to the Consumer Code. This legislative development, 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 and repealing Directive 2009/22/EC, constitutes a significant step forward in the modernisation of consumer protection in Luxembourg and aligns national procedures with European standards on collective redress.
At the first constitutional vote on the bill on 30 October last, the Chamber of Deputies stressed that the experience of other Member States has shown that the practical implementation of class actions raises significant questions relating to effective access to justice and procedural complexity, and invited the Government to carry out, within five years from the entry into force of the Law, a comprehensive evaluation of the implementation of class actions in Luxembourg in order to assess their effectiveness and identify any legislative adjustments.