There is very little history of bringing mass consumer claims in Sweden.

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

Collective actions are not very common in Sweden. Since 2003 it has been estimated that 30 collective actions have been initiated.

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

Collective actions can be initiated by a legal or physical person, by a non-profit association with either consumer or employee interests, or by a competent authority. A legal entity must meet certain criteria to be approved to initiate collective actions, including being non-profit, independent, and having operated for at least twelve months.

• Organisations and authorities designated as Qualified Entities can bring both domestic and cross-border representative actions.
• Under the Group Proceedings Act, organisations can also bring ad hoc representative actions without needing to be a Qualified Entity.

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

Collective actions in Sweden follow an opt-in model, where consumers must notify the court in writing to be included.  

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

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

Punitive damages are not available.

The usual forms of relief permitted include:

• Injunctive measures (e.g., prohibitions and orders to provide information).
• Redress measures (e.g., price reductions, reimbursements, or damages). 

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

Actions can only be brought by bodies that fall within specific criteria. Cross-border actions are allowed for entities approved by the European Commission.

Is third party funding of litigation permitted?

Third party funding is permitted, and the new law allows approved entities to require a share of the awarded amount to go to the funder. However, the funder must not be dependent on, or a competitor of, the defendant and must not influence the procedural decisions in a way that harms the consumers' interests.

Is litigation funding permitted for collective actions?

Litigation funding for collective actions is allowed, with specific provisions for third-party funding.

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

Approved entities must inform the public about collective actions on their website or in a similar manner.

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

Settlement is binding if approved by the court. Consumers will be bound if they are part of the group.

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

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

There are ways to retrieve what has been awarded if there has been non-compliance through usual court procedures.

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.