The financing of the collective redress. The Achilles heel of the transposition into Spanish law of Directive (EU) 2020/1828 of 25 November

Abstract

The financing of representative or collective actions (mainly compensatory actions) is one of the central aspects that can determine the success, but also the failure, of this instrument in practice. In this paper, we will analyse the two main models of legitimation and financing (liberal and conservative) that have prevailed in Anglo-Saxon and continental legal systems to date. We will then analyse the problems generated in Spain by the establishment of the conservative model, obstacles which, in our opinion, have had a major impact on the ineffectiveness of collective actions in Spain. Finally, we will analyse from a critical perspective the proposed reform contemplated in this respect in the Organic Law Project on collective actions for the protection and defense of the rights and interests of consumers and users, with the aim of transposing Directive 2020/1828 of 25 November 2020 on representative actions for the protection of the collective interests of consumers into Spanish law.