Luxembourg introduces class actions in consumer law

Bill of law 7650 introducing class actions in consumer law was unanimously adopted by the Luxembourg Parliament on Thursday, 30 October 2025.

This legislative reform is part of the implementation into Luxembourg law of Directive (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers.

Luxembourg has thus taken a major step forward by introducing a class action mechanism in consumer matters, inspired by the French and Belgian models, enabling qualified entities to take legal action on behalf of multiple consumers who have fallen victim to the same breach by one or more professionals.

This new framework contributes to broader European initiatives to strengthen consumers’ access to justice and marks an important evolution in Luxembourg consumer law.

The new law introducing class actions provides a unified and effective procedural framework for obtaining cessation or indemnification measures.

Class action proceedings may be initiated where multiple consumers in similar or identical circumstances have suffered harm to their individual interests due to breaches by one or more professionals, including situations where the breach has ended prior to commencing or concluding legal proceedings.

The law specifies that only qualified entities may bring such legal actions. Individuals are thereby precluded from initiating these proceedings independently.

The legislation establishes a rigorous procedure that is characterised by transparency and comprises three principal stages:

1. The Luxembourg District Court determines whether the claim is admissible.
2. The Court rules on the professional’s liability and determines, where applicable, the group of consumers concerned, the categories of harm to be compensated and the applicable opt-in/opt-out system.
3. The Court appoints a liquidator who supervises the implementation of the compensations ordered.

The law further provides for a mediation mechanism, which adapts the general civil and commercial mediation principles with specific derogations where necessary to accommodate the distinctive characteristics of class action procedures.

In conclusion, Luxembourg consumers now benefit from a contemporary class action mechanism that aligns with European standards and addresses modern challenges. The new legislation ensures effective access to justice and indemnification through a unified procedure that enables both the cessation of unlawful practices and compensation for harm suffered, with implementation overseen by a liquidator and publicity measures guaranteeing that information reaches all affected consumers.