FRANCE Trends and Developments Contributed by: Grégoire Bertrou, Delphine Grimond and Augustin Paperon, Willkie Farr & Gallagher LLP
and ensuring meaningful access to justice. Compared with other international approaches, the French solu- tion seems both pragmatic and proportionate. In some jurisdictions, associations are permitted to solicit direct financial contributions from the victims they represent. However, this approach can create disincentives for participation. Other systems allow lawyers to work on a contingency basis, receiving payment only at the conclusion of the case and typi- cally taking a substantial share of any resulting com- pensation. Although such arrangements can enhance access to justice and improve procedural efficiency, they remain controversial in France. French policy- makers have long viewed these models – especially as practised in the United States – with caution, con- cerned about their potential economic ramifications. In particular, the US model, which encourages law firms to target well-resourced defendants (commonly referred to as having “deep pockets”) based on their ability to pay rather than the merits of the claim, is seen as a potential threat to economic stability. The fear is that this could incentivise a surge in class actions against large corporations, driven more by financial opportunism than legal merit. A New Compliance Trigger: Class Actions as an Internal Governance Incentive The 2025 reform of the French class action regime introduces a more coherent and accessible framework for collective redress, which could serve as a powerful lever to strengthen corporate compliance. By broad- ening the scope of eligible claims to encompass all forms of damage caused by professionals, whether in the public or private sector, in the course of their business activities, the risk of being targeted by group litigation has become more concrete and widespread across industries. As a consequence, the class action mechanism is poised to evolve from a marginal pro- cedural tool into a meaningful driver for companies to enhance their internal compliance systems and risk management practices. The growing potential for reputational harm and finan- cial exposure in class actions may prompt compa- nies to proactively integrate legal risk management into their core operations. For example, preventive legal audits, systematic documentation of internal
decision-making processes, and the establishment of dedicated compliance departments could become routine governance strategies – not merely to satisfy regulatory requirements, but also to address the esca- lating threat of collective civil liability. Although the French legal system does not allow for punitive damages, the potential threat of a class action – along with the significant financial and reputational costs, including legal expenses, negative publicity, and possible civil fines for obstructive conduct – can serve as a strong incentive for businesses to integrate legal compliance more thoroughly into their organi- sational structures. This reflects a broader shift seen across several European jurisdictions, where private enforcement tools are increasingly leveraged not only to provide compensation but also to reinforce regula- tory goals through deterrent effects. In the United States, where the risks of protracted and costly litigation, expansive discovery obligations, and substantial damages awards (including puni- tive damages) are much higher, class actions have long served as a powerful motivator for companies to adopt robust internal compliance programs and to think proactively about ways to mitigate risk, eg, through arbitration provisions and class action waiv- ers in consumer contracts. Regular training on legal and ethical standards, comprehensive whistle-blower protection frameworks, and pre-emptive settlement strategies have become deeply ingrained in Ameri- can corporate governance. Moreover, the business community relies on organisations like the Chamber of Commerce of the United States, the world’s largest business federation, to submit amicus curiae (“friend of the court”) briefs in important appellate litigation involving pivotal issues, such as curtailing class action litigation. This focus on corporate governance and risk mitigation is largely attributable to the significant deterrent effect of the US class action system, which compels companies to internalise legal risk and adopt a proactive approach to compliance. The Limits of the French Class Action System The opt-in mechanism remains a structural constraint within the French class action framework. Under this model, potential claimants must actively take steps to join the proceedings, thereby significantly lower-
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