Collective Actions in Italy

The Italian Parliament recently enacted legislation that would for the first time make possible in Italy the filing of so-called “collective actions”. The new law, which will become effective as from July 1, 2008 (but will also cover causes of action arising before that date), was promulgated after nearly two years of debate regarding the costs and benefits of introducing into the Italian legal system a procedural device bearing some resemblances with U.S.- style class actions.

Under the new law, collective actions may be brought only by associations of consumers and users registered with the Ministry for Economic Development (of which there are currently 16), or by ad hoc committees that are found by the courts to be “adequately representative of the collective interests that they seek to protect”. The new remedy may be pursued only with respect to certain actionable torts or breaches of contract, and only where the interests of a “multitude of consumers or users” are at stake. Among other conditions, the law includes a provision intended to preclude conflicts of interest between plaintiff associations or committees and the consumers or users whose interests they purport to protect. A two-stage procedure is contemplated: an initial phase to establish liability, and a subsequent one for the determination of damages owing to individual consumers or users who have elected to opt into the collective action or have otherwise intervened in the proceedings. The new law, which is not very detailed, leaves unanswered a number of significant questions.

The attached memorandum describes the main features of the new legislation.