The Fundamentals Of Our Work

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Part I

The signatory entities have adopted the following guidelines for their work: 

• The signatory entities strive for non-violent communication and a low-hierarchy structure within their the signatory entities and in relation to other signatory entities.
• Members of management bodies aim for a consensual management style. Employees, members or volunteers and stakeholders for whose benefit the work is performed (e.g. consumers) will be recognized and heard, in a non-discriminatory way and on equitable, fair and equal terms.
• A veto grounded in moral reservations shall be respected by peers.

Part II

Independence is the basis and precondition of our work. To ensure this, the undersigned entities have committed themselves to the following:

§ 1

Signatory entities are therefore independent organization and — except for consumers — are not influenced by any individuals or entities, particularly companies, that may have an economic interest in initiating a representative action, even when third-party funding is involved.

The management structure and comprehensive internal policies of signatory entities ensure the prevention of any external influence or conflicts of interest that could arise in connection with representative actions. These procedures are outlined below. Signatory entities operates across all EU /the EEA member states, and specific measures related to representative actions may vary depending on national laws and case-specific details. Compliance with applicable, local laws is mandatory.

§ 2

No board member of a signatory entity holds a commercial interest in initiating representative actions.

In order to exclude influence by any person or persons (in particular traders or financiers) who have an economic interest in bringing a representative action and to prevent conflicts of interest between the signatory entities and/or their financiers and/or consumer interests, the following shall apply in addition:

• No member of a governing body of a signatory entity works as a lawyer or in any other capacity for a law firm that is mandated by the signatory entities.
• There is no personal or family relationship between members of a board and a person or law firm who is mandated by the signatory entity (hence: law firm) to conduct proceedings on behalf of the signatory entity; this includes personal or family relationships to individuals employed by or holds equity interests of the law firm.

Additionally, signatory entities conducts ongoing reviews, both generally and prior to initiating each representative action, to identify any potential conflicts of interest. In cases where a conflict of interest arises, the involved board member abstains from the decision-making process.

If a case is (totally or in part) financed by a third party, the signatory entity will provide information about the source of funding both in proceedings before authorities or courts and as part of the mandatory publications for the conduct of proceedings. Any applicable additional legal requirements under the law of the EU/EEA member state will be honored.

§ 3

Representative actions often require external funding due to their high costs, which a non-profit organization like the signatory entities cannot bear alone. Signatory entities recognize, that — at the same time — there is a potential for these actions to be abused and for the signatory entities to be unduly influenced.

If third-party funding is used, all necessary precautions are taken to maintain the organization’s independence and prevent undue influence by funders. For instance, funders must disclose potential conflicts of interest before being engaged, ensuring that the action does not target …

• a competitor of the funder or
• a company on which the funder depends.

Signatory entities will retain full control over the strategy, design, and progress of the proceedings, ensuring that any settlement will serve the interests of consumers.

If a redress procedure (art. 9 Directive (EU) 2020/1828) is financed by any third party, the signatory entity checks in a separate and documented procedure whether the financier (or another person on whom the financier is dependent for conducting its own business) is in competition with the (prospective) opposing party. If doubts remain after the conclusion of this procedure, the signatory entity will refuse the financing.

§ 4

For all class or collective actions aiming at collective redress modeled after art. 9 Directive (EU) 2020/1828, the following applies:

• Signatory entities ensure transparency in its legal objectives by entering into specific agreements (contracts) with participating consumers.
• These contracts clearly outline the essential aspects of the relationship between the organization and the consumers. This approach identifies and addresses potential conflicts of interest early, ensuring that consumers with differing objectives do not join a particular lawsuit.
• Depending on the applicable law, signatory entities may also allow consumers to withdraw from a representative action if their objectives diverge during the proceedings. Additional measures may be implemented on a case-by-case basis to address specific legal or practical requirements.
• While in most EU/EEA member states, legal and professional codes of conduct regulate conflicts of interest between clients and their legal representatives, where these regulations are insufficient, signatory entities supplements them with contractual provisions.
• Before initiating any legal action, the organization carefully defines the rights, obligations, and objectives of the case with its legal representatives and documents these agreements in contracts, wherever legally permissible. These measures ensure that the interests and incentives of all parties—legal representatives, consumers, and other partners—align with the overarching goals of the action, thereby preventing conflicts of interest.

For clarification: the specific rules of § 4 do not apply to proceedings with the aim of injunction (including reimbursement of costs for the signatory entities), nor for actions to seize profits for the benefit of state treasury of a EU/EEA member states.

Signatory Entities