A new era of consumer protection begins in Luxembourg

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On 30 October 2025, the Luxembourg Chamber of Deputies unanimously approved Bill No. 7650, which introduces into national law a collective action mechanism in the field of consumer law. This step was a landmark event for all those who have faced injustice from companies but have not been able to fight alone.

A class action lawsuit allows a group of consumers who have suffered the same violation of the law to join forces in a single lawsuit. Thus, instead of multiple individual lawsuits, there is one, but more powerful and effective one.

The class action procedure consists of three steps:

Eligibility and starting the procedure

The action is filed by a qualified organisation with the Luxembourg court. The cases on which it is based, a description of the affected consumers and the measures requested (termination, compensation or both) must be specified. The court verifies the transparency of the funding and the absence of conflicts of interest. Once the claim is declared admissible, the information is published on the website of the Direction de la protection des consommateurs (DPC).

Compensation for damages

The court establishes the company's liability, determines which consumers are covered by the claim and how compensation will take place. A liquidator is appointed and accepts applications to join (or withdraw) from the process. Consumers can join the group (opt-in) or opt out (opt-out). It takes between 2 and 6 months to make an application. All requests must be reasoned and documented. Objections are heard by the court.

Realisation of compensation

The company is obliged to compensate each victim individually. Compliance is monitored by the liquidator, who reports to the court. A final report is prepared upon completion.

The parties may also settle disputes amicably by entering into a mediation agreement, which is approved by the court. It is also subject to publication and ensures that all procedural rights of the parties are respected.

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