On 13 October 2023, the Law on the Issuance of Court Orders and the Filing of Representative Actions for the Protection of Consumers’ Collective Interests of 2023 came into force following its publication in the Official Gazette of the Republic. As stated in its preamble, the purpose of this Law is to harmonise national legislation with 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 to repeal the Directive 2009/22/EC. At the same time, the enactment of this Law also led to the repeal of the Issuance of Court Orders for the Protection of Consumers’ Collective Interests Law of 2007, marking a significant shift in the legal framework governing collective consumer redress in Cyprus.
The overarching objective of this Law—alongside other EU consumer protection laws—is to shield consumers from unlawful and/or abusive practices and/or omissions by traders. More specifically, it provides a safeguard for the collective interests of consumers across multiple sectors, including healthcare, energy, telecommunications, financial services, data protection, tourism, and transport, among others.
A defining feature of the Law is that it enables consumers to seek redress through representative actions. These are legal proceedings brought before the courts by a designated qualified entity on behalf of a group of consumers, establishing a mechanism for collective legal protection. The criterion for consolidating claims under the same representative action is objective: consumers must be taking action against the same or a similar trader based on the same or similar facts, seeking both prohibitory injunctions and compensatory measures to address unlawful business practices.
Moreover, the representative action mechanism serves to uphold the principle of judicial economy by reducing litigation costs and procedural delays. At the same time, a collective claim is significantly more likely to succeed than an individual lawsuit, enhancing consumer protection in practice.
Despite its legislative enactment, it is worth noting that, to date, Cypriot courts have yet to examine or rule on a case brought under this Law. The absence of judicial precedent leaves open questions regarding the practical application of the Law, including procedural complexities and the extent to which consumers will utilise this new legal tool to assert their rights.
Glossary:
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Consumer: Any natural person acting for purposes outside their trade, business, craft, or profession.
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Trader: Any natural or legal person, whether private or public, acting (including through another person acting on their behalf or for their account) for purposes relating to their trade, business, craft, or profession.
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Representative Action: A legal action for the protection of the collective interests of consumers, filed by a qualified entity as an applicant on behalf of consumers, with the aim of:
(a) Obtaining a court injunction under the provisions of Article 12; and/or
(b) Obtaining an order for redress and/or compensation under the provisions of Article 13.
Author:
Mairi Tsiachmatioti
Trainee Lawyer