The new representative actions introduced by the Austrian legislator last year are expected to gain momentum in 2025. The new provisions aim to stop unlawful business practices that threaten or harm the interests of a large number of consumers, and to enable affected consumers to seek redress (e.g., by way of damages).
Significant Changes
- Introduction of actions for redress and injunctive relief
- Extension of the right to sue to recognized associations
- Suspension of statute of limitation for affected consumers
Consequences for the Market
- The new representative actions can be brought by any legal entity recognized as a so-called Qualifizierte Einrichtung (qualified institution). This opens the way for many new players, some of which are likely to concentrate and specialize in certain areas of law (e.g., data protection).
- Broad scope of application: Actions for injunctive relief and redress can be based on a variety of facts – such as breaches of legal provisions (e.g., violations of the GDPR, AI-Act etc.), improper clauses in contracts and general terms and conditions, the exercise of unlawful business practices, etc.
Our Services
In order to prevent and defend against such new representative actions, and to identify potential problems at an early stage, we offer the following tailor-made services:
- Review of contracts and terms and conditions
- Identification and classification of risks in business practices
- Compliance training and consultation
- Legal representation in proceedings and assistance in preemptive risk mitigation