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By Olivier REISCH, Partner Amin BOUAZZA, Senior Associate, DLA Piper Luxembourg
Luxembourg has introduced its first consumer collective redress mechanism through the Law of 20 November 2025 (Law of 2025), implementing Directive (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers (Directive). The reform strengthens consumer protection while avoiding U.S.-style class actions. The system enables qualified entities to seek injunctive and compensatory relief but embeds strict safeguards, judicial oversight, and limits on financial incentives. It applies broadly across sectors including financial services, where many activities are directly consumer facing and where it may influence investor protection...
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