Czech Republic already has a collective action regime in place.

What is the most common type of collective action you are seeing?

Representative consumer actions, although even these are rare.

What are the various ways a group could bring a collective action?

Collective actions can only be initiated by an independent non-profit organization active in consumer protection registered as a “qualified entity” by the Czech Ministry of Industry and Trade or another EU Member State relevant authority.

If collective actions are permitted, are these opt-in or opt-out actions? 

Opt-in.

Does the law currently provide for private collective actions by consumers?

Yes. Both by consumers and small businesses.

If collective actions are permitted are the usual forms of relief permitted and can punitive damages be claimed?

Usual forms of relief are available. Punitive damages are not available.

Are bodies which represent consumers able to bring actions on their behalf? And if yes, can these bodies bring cross-border actions?

Yes, they can bring a collective action if they are registered as “qualified entity” (see above) and, because of the opt-in system, if they are representing at least ten consumers or small businesses. Otherwise they can only bring actions in specific cases and seek limited reliefs (e.g. in cases of unfair competition).

Cross-border claims can only be made if the Czech courts have jurisdiction.

Is third party funding of litigation permitted?

Yes.

Is litigation funding permitted for collective actions?

Yes. 

Are consumer groups and law firms allowed to advertise the collective actions they are running?

Is there a formal mechanism to settle actions on a collective basis?

The settlement must be approved by the court. Prior to the approval, members of the group are entitled to file their objections against the proposed settlement.

If a trader loses a collective action does the law require the trader to publicise this?

No, but all judgements resulting from a collective actions will be published online by the court.

Is there a penalty for non-compliance with a final decision issued in respect of a collective action?

Yes, the breaching party could face enforcement of the final judgement.

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.