SWEDEN Law and Practice Contributed by: Andreas Eriksson, Anders Arthur, David Nykvist and Saga Hanson, TIME DANOWSKY Advokatbyrå
• the action must be based on circumstances that are common for, or similar to, the claims of the class members; • the class action does not appear inappropriate due to the fact that the grounds for certain class members’ claims differ substantially from those of other claims; • the majority of the claims covered by the action could not be asserted as effectively through actions brought by the class members themselves; • the class is appropriately defined in terms of size, scope and other factors; and • the claimant, in light of its interest in the matter, its financial capacity to bring a class action, and other circumstances, is suitable to represent the class members in the case. The judgment in the class action will only be binding on the class members who opt in. Act on Class Actions for the Protection of Consumers’ Collective Interests The second system follows from the Act on Class Actions for the Protection of Consumers’ Collective Interests ( lag om grupptalan till skydd för konsument- ers kollektiva intressen ), which implements an EU Directive. This Act is specifically designed for con- sumer protection and gives the right to specifically authorised entities to seek prohibitions and payment of fines, and to claim compensation or other remedies on behalf of class members against businesses that are found to violate consumer protection legislation. 7.2 Standing Requirements Under the Class Action Act, the following require- ments apply for standing to sue: • An individual class action may be brought by a natural or legal person who has a claim covered by the action and is considered suitable in light of its interest in the matter, its financial capacity and other circumstances. • An organisational class action may be brought by a non-profit association that, in accordance with its by-laws, represents the interests of consumers or employees in disputes between consumers and a business regarding any goods, services or other benefits that the business offers to consumers.
• A public class action may be brought by a govern- ment agency that, given the nature of the dispute, is suitable to represent the class members. The government determines which agencies may bring a public class action. Class actions under the Act on Class Actions for the Protection of Consumers’ Collective Interests may only be brought by specifically authorised enti- ties meeting certain requirements set out in the Act. Currently, the Swedish Consumer Agency is the only authorised entity in Sweden. Any party whose claim is covered by the action may participate. The judgment in the case will only be bind- ing on the members who actively opt in. 7.3 Relief Under the Class Action Act, it is possible to bring any type of claim that could be brought in general civil pro- ceedings. Available remedies therefore mainly depend on the substantive laws relevant to the dispute at issue. In practice, most class action claims are for damages or other types of monetary compensation. As regards damages, the basis for calculation var- ies across different areas of law. However, the start- ing point under Swedish law is that the injured party should be restored to the same financial position as if the harmful act had not occurred. This requires proof of the loss that has been suffered and that there is an adequate causal link between the harmful act and the loss. If it is difficult to prove the exact amount of the loss, the court may in certain circumstances estimate it at a reasonable amount. In certain areas of law, standardised or non-compensatory damages may also be awarded. 7.4 Class Actions, Mass Claims and Arbitration Class actions and mass claims are practically nev- er brought in arbitration. Arbitration is based on an agreement between the parties, and the system is designed for disputes between one claimant and one respondent. While the Swedish Arbitration Act, as well as the rules of several arbitration institutes allow for consolidation of proceedings and joining of parties in certain situations, there does not appear to be any evi-
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