Alternative Methods of Collective Disputes Resolution in the Czech Republic

On 11 June 2013, the Commission issued the Recommendation on common principles for injunctive and compensatory collective redress mechanisms in the Member States concerning the violations of rights granted under Union law. The main areas where private enforcement of rights granted under Union law in the form of collective redress is of value are consumer protection, competition, environment protection, protection of personal data, financial services legislation and protection of investments. Point 13 of the Recommendation concurrently emphasises that the principles it puts forward relate both to judicial and out-of-court collective redress. The Member States should ensure that judicial collective redress mechanisms are accompanied by appropriate means of collective alternative dispute resolution available to the parties before and throughout the litigation. Point 25 et seq. of the Recommendation then contains special regulations concerning collective alternative dispute resolution and settlements. The purpose of this article is to evaluate if the current legislation on alternative dispute resolution in the Czech Republic meets the principles encompassed in the Recommendation or if radical legal changes need to be adopted.