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Class actions to be finally approved in the Czech Republic

Czech Republic
05/06/2024
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The Senate of the Parliament of the Czech Republic has approved the draft law on class actions, which will allow consumers and small businesses to jointly pursue their claims against businesses. The draft is now with the President of the Czech Republic and his signature is expected after his return from Normandy (i.e. on Friday 7 June or early next week).

It is not yet certain when the Act will come into force, but it seems that 1 July 2024 could be manageable. As already informed in our earlier Law-Now article (see Czech Republic drafts law on class actions, the Czech Republic was obliged to implement this regulation no later than 25 December 2022. The draft applies to consumer disputes arising after 24 November 2020, i.e. from the entry into force of the European Directive which the draft implements.

The draft includes an opt-in option according to which affected consumers must actively enter into a class action to claim their rights. The class actions need to be filed with the Municipal Court in Prague exclusively by registered non-profit entities. 

There have been two important changes that the original draft did not contain:

  • Class actions will require at least 10 consumers to take part (originally, it was 20 consumers);
  • Newly, small businesses employing fewer than 10 people and whose annual turnover or balance sheet total does not exceed CZK 50 million will also be considered consumers for the purpose of class actions.

For more information on class actions in the Czech Republic, contact your CMS client partner or local CMS experts.

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