New French Legal Framework for Class Actions - post publication
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Analysis & trends
New French legal framework for class actions and transposition of directive (EU) 2020/1828 on representative actions
On the occasion of the transposition of Directive (EU) 2020/1828 on representative actions[1], an ambitious reform of the legal regime for class actions (actions de groupe) was initially envisaged in a bill tabled in 2023 by deputies Laurence Vichnievsky and Philippe Gosselin, who co-authored an information report on the results and prospects of class actions in France[2].
Although this bill was eventually abandoned, the French government took the initiative of drafting a new one finally transposing the provisions of the above-mentioned directive[3], in particular those enabling authorised entities to initiate cross-border group actions in France in the event of infringement of a limited number of EU law provisions, mainly relating to consumer law.
The legal reform of the class action has thus be enshrined in a law containing various provisions for adapting French law to EU law. This law was promulgated on 30 April 2025[4].
More than a mere transposition, this law adopted in a Joint Committee between the French National Assembly and the Senate (commission mixte paritaire) includes many of the provisions of the former bill and adapts others.
In essence, this law institutes a common legal frame for class actions, replacing the sector-based approach that previously prevailed.
The law thus provides that “a class action is brought by [an approved association] on behalf of several individuals or legal entities, placed in a similar situation, resulting from the same breach or a breach of the same nature of its legal or contractual obligations committed by a person acting in the exercise or on the occasion of his professional activity, by a legal entity under public law or by a body under private law entrusted with the management of a public service“.
This new system extends the scope of compensable damage to all types of damage, “whatever their nature“, and generalises the dual purpose of class action, which may aim to compensate for damage suffered or to put an end to a breach (or both).
The new law reserves the right to bring a class action to associations (or trade unions, as the case may be) benefiting from approval from an administrative authority, under certain conditions to be specified later by decree. However, an exception is made for actions exclusively aiming at putting an end to a breach of contract. In this case, a class action may be brought by any non-profit association that has been legally registered for two years, carries out an effective and public activity and has as one of its statutory objectives the defense of the interests that have been infringed.
The law also provides a framework for third party funding in class actions. While entities empowered to bring a class action “may receive funds from third parties“, this financing must be transparent and shall not have “either the object or the effect of these third parties exercising an influence on the introduction or conduct of class actions likely to prejudice the interests of persons represented“.
On a procedural level, the law essentially takes up the foundation inherited Law no. 2014-344 of 17th March 2014 on consumer affairs: the defendant’s liability is first ruled upon before delimiting, where appropriate, the perimeter of persons eligible for compensation. The judge then orders publicity of the decision, inviting those eligible for compensation to join the previously defined group, within a timeframe ranging from two months to five years.
The legislator has therefore preserved the opt-in mechanism, which distinguishes the French class action system from US class action procedures, where the opt-out prevails.
Some notable procedural developments are worth mentioning:
- The end of the plaintiff’s obligation to give prior notice so that the class action can be admissible;
- The possibility for the Public Prosecutor’s Office to bring an action for cessation of the breach as the main claimant;
- The possibility for the pre-trial judge (juge de la mise en état) to take appropriate provisional measures to put an end to the alleged breach in the event of imminent damage or a manifestly unlawful disturbance;
- The generalisation to all matters of the possibility of bringing a class action directly against the insurer of the person responsible;
- The introduction of special jurisdiction for certain courts to hear class actions;
- The creation of a national register of class actions held by the Ministry of Justice.
The legislator also sought to punish lucrative negligence by inserting a new provision in the French Civil Code, enabling civil or administrative courts to impose a civil penalty (not insurable) on professionals that are found guilty of fraudulent misconduct causing serial damage.
This civil penalty may be requested in any proceedings, on the initiative of the Public Prosecutor’s Office before judicial courts or of the Government before administrative courts. The amount of such fine can be up to twice the profit made by a natural person, and up to five times the profit made by a legal entity.
The new legal regime for class actions applies to all actions brought after the law’s publication on 30 April 2025, which will coincide with its entry into force. An exception is made for the provisions relating to the civil penalty, which apply only to actions where the event giving rise to the defendant’s liability occurred after the law’s publication.
The legislator has also provided for a transitional regime: on the one hand, the previous regime remains applicable to actions brought before the entry into force of this new law and, on the other hand, persons who, on the date of entry into force, satisfy the conditions for bringing a class action “retain this option for a period of two years from that date“.
