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Litigation Arbitration & Dispute Resolution EU Directive Actions Guide

Greece

(Europe) Firm Zepos & Yannopoulos

Contributors DIMITRIOS BABINIOTIS

Updated 19 July 2023
Representative Action Mechanisms: Does a collective action mechanism already exists in your jurisdiction, and if so, is the Directive implemented as a part of or as a separate mechanism?

Article 10 of Law 2251/1994 on Consumer Protection (“Consumer Protection Law”) provided for a collective action mechanism since 1994 and the available remedies included injunctive measures and compensation for moral damages in the form of interim or definitive measures. In essence, the preexisting legal framework was similar to the mechanisms provided under the Directive. The collective actions are initiated by consumers’ associations and involve actions brought before state courts and administrative authorities.

Law 5019/2023 transposed into Greek Law the Representative Actions Directive 2020/1828 repealed Article 10 of the Consumer Protection Law and amended the 8th part of the Consumer Protection Law. The Directive is implemented by virtue of Articles 10α–10ιη and 11 which apply to representative actions filed from 25 June 2023 onwards. The collective action mechanism provides for judicial procedures and/or administrative procedures.

Claims which can be brought in a Representative Action: Which claims can be brought? Which redress measures are available other than compensation?

Pursuant to Article 10θ-10ια, consumers’ associations are entitled to seek injunctive measures (either in the form of provisional measures or definitive measures) and redress measures. In particular, the available remedies may include declaratory relief finding that a particular practice constitutes an infringement of Annex II which forms part of the Consumer Protection Law and includes provisions of Greek Law and Union Law relating to consumers’ protection, compensatory relief, relief for specific performance, repair and replacement, price reduction, contract termination and reimbursement of the price paid.

Enforcement of the relevant judgment may be initiated on the basis of Articles 904 et seq. of the Greek Civil Procedural Code ("GrCCP") once it is final or in case it is provisionally enforceable. Enforcement is not possible under Greek procedural law for declaratory decisions while final constitutive decisions produce their legal effects upon their issuance.

Costs: To what extent must the unsuccessful party pay the costs of the proceedings, must they pay all costs or only a part of them, and if so, which part?

Under Article 173 GrCCP, each party is obliged to pay upfront its own procedural costs.

Under Article 176 GrCCP, the Court upon issuance of its judgment will fix the legal costs which are borne by the non-prevailing party. In case the action was only partially admitted, the Court decides on the allocation of the procedural costs to the parties. In complex cases, the Court may set off the legal costs involved on its own motion.

Article 10ιε ¶ ¶ 1,2 reproducing Article 12(2)(3) of the Directive, introduces an exception providing that individual consumers concerned by a representative action shall not pay the costs of the proceedings unless such costs were incurred as a result of that consumer’s intentional or negligent conduct. This is because the representative action is filed by the qualified entity and not the individual consumer. It is also provided that a stamp fee (calculated as a percentage of the amount sought) is not owed in cases of representative actions.

Transitional Law: Are there any peculiarities regarding national transitional provisions in relation to Article 22?

In accordance with Article 22 of the Directive, Article 103 of Law 5019/2023 provides that the newly inserted provisions apply to representative actions filed on 25 June 2023 and onwards.

Provisions on interruption of limitation periods by the filing of a representative action apply to claims related to infringements occurring after 24 June 2023.

Opt-in vs opt-out: How are opt-in/opt-out mechanisms regulated (in particular, whether in the context of an order for redress – both domestic and cross-border – claims are permitted on an opt-in or an opt-out basis)?

Pursuant to Article 10ια ¶ 3 and with respect to redress measures, representative actions are permitted on an opt-in basis. In particular, consumers may express their wish to be represented by a qualified entity in an action and to be bound by the outcome until the submission of written pleadings with the court. By expressly agreeing to be represented by a specific consumers’ association in the representative action, the consumers may not be represented by another consumers’ association in other representative actions nor file an individual action against the trader for the same set of facts.

Greece has also adopted a “late” opt-in mechanism to avoid complaints filed by individual consumers in cases where a court judgement on a similar representative action has been rendered. Notably, following the issuance of a final (not subject to appeal or petition for cassation) judgment granting the representative action, any individual consumer who has not expressed the wish to be represented in the action (prior to the submission of the written pleadings) may apply in order to benefit from the outcome. In particular, within the deadline set by the court by virtue of the decision rendered, the consumer may serve a written notification of its claim to the trader. In case the consumer’s claim is not satisfied within thirty days following the notification, the consumer may apply with the General Secretariat of Commerce of the Ministry of Development and Investments and submit (a) the judgment, (b) the documents evidencing its claim, and (c) proof that the thirty day deadline afforded to the trader has expired. If the competent authority finds that the individual consumer is entitled to the raised claim, the trader is invited to satisfy the consumer’s claim within five days. Upon failure of the trader to pay, a fine spanning between EUR 5,000 up to 3,000,000 is imposed. It is noted that in case additional remedies are afforded to the consumer under applicable law, these remain available.

Qualified Entities (QEs): What criteria apply to the designation of QEs, with special regard to the designation of QEs for the purpose of bringing domestic representative actions?

Domestic and cross-border Representative Actions can be brought by qualified entities, even without being previously mandated by consumers.

Under Greek law, domestic representative actions may be brought by:

  • Any consumer association registered in the Registry of Qualified Entities ("MINFAA") and certified as a qualified entity by the Ministry of Development and Investments may file domestic representative actions before courts or administrative authorities. Qualified entities must (a), maintain a website, (b) not be subject to insolvency proceedings or be declared insolvent, (c) be independent and not influenced by persons other than consumers, (d) make publicly available in plain language on their website information on their sources of funding, their organizational, management and membership structure, their statutory purpose and their activities, and also (e) demonstrate 12 months of actual activity in relation to the protection of the consumers.
  • Foreign entities representing the interests of consumers in another Member State which are included in the list published by the European Commission.
Class Criteria/Certification: What is the class criteria/certification stage applicable to representative actions, including provisions, if any, that give substance to the requirement “to dismiss manifestly unfounded cases at the earliest possible...

The actions filed by the qualified entities pursuant to the Consumer Protection Law are not submitted to any class criteria/certification test as the one applicable to class actions under U.S. law. The Court will thus hear the case without any prior certification stage verifying that it relates to a representative action. Furthermore, Greek procedural law does not provide for the dismissal of manifestly unfounded cases at the earliest possible stage of the proceedings. However, Article 10ι ¶ 4 in the fine provides that in case a complaint for injunctive measures and compensation is dismissed as manifestly unfounded by virtue of a final decision, the trader may file a complaint against the qualified entity and the members of its Board of Directors seeking compensation for damages or moral damages sustained in light of the litigation initiated against the former.

Third-Party Litigation Funding: Please describe how third-party funding is regulated, with special regard to funding of representative actions for redress measures. Can the court order the representative organization to disclose the funding agreem...

In accordance with Article 10ιδ, third-party funding of representative actions is explicitly prohibited.

Redress Settlements: How are settlements regulated, with special regard to “rules according to which individual consumers concerned by the action and by the subsequent settlement are given the possibility to accept or to refuse to be bound by sett...

In cases of representative actions seeking redress measures, the qualified entity and the trader may apply with the Court for the approval of a settlement reached between them. The Court may refuse to approve the settlement in the case it is considered abusive.

Approved settlements are binding upon the qualified entity, the trader and all consumers related to the dispute. Individual consumers may accept the settlement or deny being bound by it, within a deadline and through the procedure specified by a decision of the Minister of Development and Investments to be issued.

Public Information/Database of Representative Actions: How are the publication of information and database of representative actions regulated, with special regard to any requirement of judicial vetting (e.g. court-approved description of the acti...

Qualified entities provide information on their websites on (a) representative actions they have decided to file, (b) the status of representative actions already filed, and (c) the outcome of such actions. Within twenty days of the filing of representative action, qualified entities inform the consumers related to the ongoing action through their websites and invite them to be represented in that action. The court may order the trader to inform – at its own costs – the consumers-members of the qualified entity which has filed the claim, on the issuance of a final judgment or on a potential settlement.

The General Secretariat of Commerce of the Ministry of Development and Investments provides consumers with information on the qualified entities, the representative actions pending, and the court judgments already rendered. The information will be available on a national digital database on representative actions to be established.

Discovery/Disclosure: Are there any special discovery/disclosure rules applicable to representative actions, or collective (non-unitary) actions in general? If there are no such rules either, please briefly refer to the general discovery/disclosur...

GrCCP does not provide for discovery proceedings. Under Article 10ib (1), in case the subject matter of the representative action relates to radio-television advertising, upon party request, the Court may order the production of documents, according to Article 232 GrCCP.

Cross-Border Actions: Are there any procedural mechanisms and other requirements for cross-border representative actions?

Qualified entities in another Member State may file representative actions before Greek Courts.

In case the infringement of EU law provisions referred to in Annex I of the Directive has occurred in Greece and affects consumers in multiple Member States, the representative action may be filed before Greek Courts by qualified entities designated in Greece and in other Member States. The MINFAA or the list published by the European Commission verifies the legal standing of the qualified entity. Greek Courts may examine on their own motion whether the statutory purpose of the qualified entity justifies the filing of a representative claim.

Cy près Awards: Are there any rules “on the destination of any outstanding redress funds that were not recovered within the established time limits”?

In case of outstanding redress funds not recovered by the consumers within the time limit set by the court, the qualified entity invites the consumers to collect the redress funds within sixty days. Upon the expiry of that deadline, the redress funds are retained by the qualified entity.

Other: Please provide any further comment that you deem worthy of note.

None at this time. 

Litigation Arbitration & Dispute Resolution EU Directive Actions Guide

Greece

(Europe) Firm Zepos & Yannopoulos

Contributors DIMITRIOS BABINIOTIS

Updated 19 July 2023