Comparative analysis on the introduction of representative actions in Croatia and existing positive practice in Austria, prepared in cooperation between the Female Consumer Club (Društvo Potrošačica) and the Austrian partner Association for the Protection of Consumer Interests (Verbraucherschutzverein – VSV) through the project ACT4Consumers – Capacity & Tools for Collective Actions. The project is aimed at strengthening the capacity of consumer protection organizations, exchanging practices between Croatia and Austria, and raising public awareness about the possibilities of representative actions.

Representative actions: Can Croatian consumers finally get justice against big corporations?

Have you ever given up on a lawsuit against a bank, telecom operator, or retail chain because the amount of damage was too small, and the legal costs and risks were too high? You are not alone. That is precisely why the European Union adopted the Representative Actions Directive, with the aim of enabling consumers to act collectively against traders who violate their rights.

However, how does this system work in practice, why do we not yet have such lawsuits in Croatia, and what can we learn from the experience of other EU member states?

What are representative actions and how do they protect you?

A representative action is a mechanism in which consumers do not have to hire lawyers individually or bear the high costs of legal proceedings. Instead, the proceedings are initiated by authorized (qualified) entities – such as consumer protection associations – which represent the collective interests of harmed citizens before the court.

Representative actions can seek two main outcomes:

1. Injunctions / Cessation of unlawful practice (e.g., removal of unfair contract terms).
2. Redress and compensation (e.g., reimbursement of overpaid amounts or damages to consumers).

Where does Croatia stand?

In 2023, Croatia adopted the new Act on Representative Actions for the Protection of Collective Interests and Rights of Consumers, formally transposing European rules. Jurisdiction for these proceedings was entrusted to commercial courts.

However, not a single representative action for redress has been initiated in Croatia so far. There are several reasons for this:

• Opt-in model: Consumers must actively sign up and explicitly consent to being represented by the qualified entity. Unlike in some countries where an association automatically represents you unless you say “no”, in Croatia you must provide explicit written consent, your Personal Identification Number (PIN/OIB), and a precise itemization of the damage. For an association, this means months of administrative work collecting documentation from hundreds or thousands of citizens even before the lawsuit reaches the court.
• Lack of resources: Consumer associations often lack sufficient financial and human capacity to conduct lengthy and complex legal disputes against large corporations. Individual associations that attain qualified entity status do not automatically receive stable state/institutional funding for this purpose. Therefore, associations have legal responsibility and status, but lack a secure source of income for working on such major cases.
• Caution among associations: Even if a third-party funder is secured, the association must independently carry out the initial legal and factual analysis of the case, requiring upfront resources and experts. Due to high court fees and the risk of covering costs in case of an adverse outcome, qualified entities hesitate to initiate proceedings without guaranteed financing.

How does it look abroad? Example from Austria

Unlike Croatia, the collective consumer protection system in Austria has a longer tradition and is significantly more active.

The Commercial Court of Vienna delivered a landmark judgment in July 2026 in a representative action against a financial services provider. The proceeding demonstrated both the benefits and challenges of the European model:

• The “similarity” challenge: One of the key issues was proving that the claims of all affected consumers were sufficiently similar to be adjudicated in a single joint proceeding.
• The role of digitalization: Austrian experience shows that simple online forms and digital platforms are crucial for allowing thousands of affected citizens to register quickly and easily for the proceeding.

What is needed for the system to work in Croatia?

For representative actions in Croatia to come to life and become an effective tool for citizens, several key steps must be taken:

1. Ensure stable funding for associations: Qualified entities must have access to dedicated funds or special financing mechanisms to stand on equal footing against large companies in court.
2. Digitalize consumer registration: Simple and secure online registries need to be established so citizens can sign up to participate in a lawsuit in just a few clicks.
3. Education and awareness: Consumers must be informed about their rights and know how to join proceedings when they notice a trader has harmed them.

Representative actions offer a great opportunity to level the playing field in the market, but without adequate support for associations and clear public information, a right on paper will hardly become justice in practice.

The full analysis with a detailed overview of results and conclusions can be downloaded as a PDF file.

Project Disclaimer:

The ACT4Consumers – Capacity & Tools for Collective Actions project is co-funded by the European Union. The views and opinions expressed are, however, those of the authors only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.