MEXICO Law and Practice Contributed by: Fernando del Castillo Elorza, Sajid Arroyo, Andrea Hernández and Alexis Romero, Del Castillo & Castro Abogados
actions, concerning divisible individual rights arising from common factual or legal circumstances. In parallel, certain consumer collective claims may be brought before the Procuraduría Federal del Consu- midor (PROFECO), the authority responsible for con- sumer protection in Mexico. Before PROFECO, collective actions constitute a legal mechanism through which a claim is filed to protect the rights and interests of a group of consumers against a company whose conduct has caused harm or damage. This mechanism has the advantage of being free of charge; however, it is subject to a dif- ferent regulatory framework from judicial collective actions and requires that the affected group be com- Standing to bring a class action is determined by the nature of the right asserted and the type of collec- tive action pursued. In general terms, actions may be brought on behalf of a group of individuals who share common circumstances. In the case of diffuse and collective actions in the strict sense, the claim is brought in representation of a col- lective interest, without the need for each affected individual to appear as a party to the proceedings. By contrast, homogeneous individual actions involve claims based on individual rights, although these are grouped together due to shared factual or legal ele- ments. Importantly, the action may be brought against any natural or legal person that has caused harm to a col- lective, regardless of whether a direct legal relation- ship exists between the defendant and the members of the group. Participation in the action therefore derives from belonging to the affected group, rather than from individual procedural acts. 7.3 Relief Class actions may seek declaratory, constitutive or condemnatory relief, in accordance with the principles of full reparation of damage and fair compensation. posed of at least 30 consumers. 7.2 Standing Requirements
The primary objective is to repair the harm caused to the collective. This may include restitution, whereby the situation is restored to its prior state or, where this is not possible, substitute performance or compensa- tion. In the case of collective actions in the strict sense and homogeneous individual actions, damages may also be awarded on an individual basis to members of the group. Damages are calculated in accordance with the appli- cable substantive law, taking into account the need to achieve full reparation. This includes not only com- pensation for the harm suffered, but also measures aimed at preventing the recurrence of the unlawful conduct. 7.4 Class Actions, Mass Claims and Arbitration Class actions and mass claims are not commonly brought in arbitration in Mexico. The statutory frame- work for collective actions is designed specifically for judicial proceedings before federal courts, and there is no equivalent procedural regime for collective redress in arbitration. While arbitration is frequently used in commercial dis- putes, it typically requires the existence of an arbi- tration agreement between the parties. This require- ment, together with the inherently consensual nature of arbitration, limits its suitability for collective claims involving multiple parties, particularly where there is no direct contractual relationship between all mem- bers of the affected group and the respondent. As a result, collective claims are predominantly pur- sued through the courts or, in consumer matters, through administrative mechanisms such as PRO- FECO, rather than arbitral tribunals. 7.5 Trends Class actions in Mexico remain relatively limited in scope when compared to other jurisdictions, largely due to their restricted subject matter, which is con- fined to consumer and environmental matters. However, there is a gradual increase in their use, par- ticularly in the context of consumer protection, where regulatory scrutiny and public awareness have grown.
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