Consumer claims in the EU - what can consumer facing businesses expect in 2026?

With the Representative Actions Directive now being implemented across Member States, reforms to product liability laws on the horizon, continuing debate about the role of litigation funding and the adoption of the updated ADR for Consumer Disputes Directive, the landscape for consumer redress continues to be robust and ever more sophisticated as we enter 2026. In this article we look at these developments and consider what businesses need to do to ensure they stay on top of these changes. 

Last month the European Commission presented its 2030 Consumer Agenda (‘the Agenda’), which sets out its strategic framework in the arena of consumer protection for the next 5 years.  Consumer protection is one of the EU’s fundamental pillars and the aim of the Agenda is to create a framework to ensure that as well as being able to purchase safe goods and services and receive fair treatment in contracts and transactions, consumers will also be able to access effective remedies when things go wrong. The developments discussed below all feature as components of the four key priority areas outlined within the Agenda.

The Representative Actions Directive: What to expect next?

Most EU Member States have now implemented the Representative Actions Directive (RAD) which allows collective actions to be brought by a representative body against businesses if they breach EU laws intended to protect consumers.  These laws include consumer laws in a broad range of areas such as data protection, travel and tourism, retail, product liability, financial services, energy and telecommunications. This breadth demonstrates the EU's commitment to providing consumers with robust mechanisms to seek redress across virtually all sectors of the economy and implementation marks a fundamental shift in how consumer rights are enforced across the bloc. 

In 2026 we expect to see increasing numbers of claims as the RAD is now firmly established in most jurisdictions, with Spain being a notable exception as implementation is still to take place there. This means that businesses will face greater accountability for breaches of consumer protection laws across multiple sectors. We are already seeing patterns in the types of claims being brought. 

Firstly, and perhaps unsurprisingly, there is an increasing prevalence of consumer law claims such as those relating to alleged unfair terms in contracts or unilateral price rises. This growth reflects both greater consumer awareness of this avenue of redress and the maturation of the legal frameworks enabling collective redress.

Secondly, data protection related claims are rising, especially in the Netherlands and Germany. For example, in Germany claims have been made against social media companies about the way they collect and monetise data.  Given the significant penalties available under the General Data Protection Regulation (GDPR) and the increasing public concern about privacy rights, this trend is likely to accelerate throughout 2026 and beyond.

Thirdly, public interest litigation, often in the form of ESG related claims, is being seen, especially in the Netherlands which has more lenient admissibility requirements for class actions which have an idealistic purpose. This approach may influence other Member States and could lead to a broader range of collective actions being pursued across the EU.

Reforms to the EU Product Liability Directive

The Revised EU Product Liability Directive (RPLD), which comes into force on 9 December 2026 is expected to also herald an increase in consumer class actions because it expands the scope of protection, the number of parties who may be liable and extends the limitation period in respect of some, but not all damage. Businesses with cross-border operations face broader liability exposures and strengthened evidence disclosure in the event of a claim. Non-EU businesses can no longer assume liability ends with an EU distributor. These changes will make it easier for consumers to bring collective claims and will expose a wider range of businesses to potential liability. 

Alternative Dispute Resolution: The Updated ADR for Consumer Disputes Directive

Alongside traditional litigation, the EU is modernising its approach to alternative dispute resolution (ADR) to better serve the digital economy by updating the ADR for Consumer Disputes Directive (the ‘Directive’). 

The updated Directive has an expanded remit extending its coverage to include not just goods and services but also the provision of digital content and digital services, including those where provision of personal data is given by the consumer in lieu of payment. This is particularly significant given the prevalence of "free" digital services that monetise user data.

Consumers will be able to seek redress for harm whether incurred before or after the contract has been concluded, providing greater flexibility in addressing consumer grievances.

The reforms will enable traders from outside the EU to take part in ADR procedures if they target their business at one or more Member States, helping to ensure comprehensive coverage for cross-border digital trade.

The Directive allows automated ADR processes but requires that a natural person reviews the outcome. This balances technological efficiency with essential human oversight—an important consideration for those concerned about AI's growing role in legal decisions.

Member States also have the option to introduce stricter rules, such as making ADR mandatory for certain disputes. This flexibility raises questions about whether the minimum harmonisation approach will result in different practices across the EU, as some countries may choose to set higher requirements than others.

The European Parliament formally adopted the Directive on 16 December and it will now be published in the Official Journal. Following this, the Directive will come into force 20 days later. Member States must implement the rules within 26 months of entry into force, while the measures themselves will begin applying 32 months after that date (meaning not before 2028).

Litigation Funding – EU says no to formal regulation

What we won’t see in 2026 is formal regulation of litigation funding by the European Commission. On 18 November 2025 the European Commissioner for Justice, Michael McGrath said, in a meeting of the EU's forum on justice for growth, that after listening to feedback from the industry the focus would be on the rollout of the RAD, and the changes to litigation funding within it, rather than the regulation of third-party funding per se. Prior to this announcement many considered that any regulation could have had profound implications for the viability and structure of mass claims, potentially affecting everything from funding arrangements to the distribution of settlements, and therefore this decision will be welcomed by both the funding industry and claimant bodies.

What steps should businesses take?

As we move into 2026, businesses can try to anticipate where increased risks may arise following these developments, in order to take steps to minimise them in advance: 

1. With collective action mechanisms now firmly established, businesses face greater accountability for breaches of consumer protection laws across multiple sectors. It is already clear that some sectors are facing greater scrutiny than others. The early cases in Germany and the anticipated surge in data protection claims suggest that technology companies are already facing this increased attention. All businesses should monitor developments by regulators in their sectors, especially in relation to consumer protection to spot where follow on claims may arise.
2. As different Member States implement the RAD and ADR frameworks at varying speeds and with different approaches, businesses will need to navigate an increasingly complex patchwork of collective redress mechanisms. Businesses may therefore want to see which jurisdictions are the most attractive to consumers because of their legal frameworks and update the risk profiles in those jurisdictions accordingly.
3. Businesses should also understand how the provisions in the RPLD interact with existing contractual arrangements and ensure compliance strategies account for the new liability landscape.  As the 2026 implementation date approaches, companies should review their supply chain structures, insurance arrangements, and contractual frameworks to ensure they are positioned to operate effectively under the new regime. The RPLD's emphasis on ensuring EU-based liability means that traditional approaches to cross-border risk management may no longer be sufficient.
4. Businesses should monitor the implementation of the Updated ADR for Consumer Disputes Directive in the respective jurisdictions in which they operate, noting if member states exercise their discretion to introduce stricter measures in relation to certain types of disputes. We will continue to monitor the implementation of the Directive and update you when relevant. 

If you would like to discuss any of these issues in more detail, please contact any of the authors or your local Bird & Bird disputes contact. 

To find out more about the Revised Product Liability Directive please visit our Product Compliance and Liability pages on our website.