On June 12, 2024, the Bulgarian Council of Ministers released a draft bill for public discussion, aiming to revise the Bulgarian Consumer Protection Act (“CPA”) to align with the requirements of the General Product Safety Regulation 2023/988 (“GPSR”) and the Class Action Directive 2020/1828 (the “Class Action Directive”).
Overhaul of the product safety regime in accordance with the GPSR
According to the assessment of the Council of Ministers attached to the draft bill the current Bulgarian product safety regulations outlined in the CPA fall short of GPSR standards and sometimes conflict with the newly adopted GPSR provisions.
In order to facilitate the enforcement of the GPSR in Bulgaria, the draft bill proposes replacing the entire section of the CPA related to product safety with new provisions. These new provisions combine references to GPSR rules with streamlined national regulations in harmony with the Regulation.
Amongst the important safety rules laid down in the amended text of the CPA are the following:
- Extension of the product safety framework to cover categories of products subject to EU harmonization legislation (e.g., medical devices, electronic equipment, machinery). Previously, the CPA only applied safety provisions to non-harmonized sectors, leaving harmonized areas to be regulated by the respective legal acts concerning such products;
- A new framework for ensuring product safety for items sold online and through online marketplaces, addressing both harmonized and non-harmonized legal areas;
- Detailed product recall rules which apply to all products, whether governed by EU-level harmonized rules or lacking specific EU legislation;
- Appointment of the Bulgarian Commission for Protection of Competition as the national point of contact for interaction with the Safety Gate Portal—a rapid alert system for dangerous products subject to recalls;
- Implementation of legal remedies for consumers affected by product recalls – such as the right of repair of the recalled product, replacement of the recalled product with a safe one of the same type and at least the same value and quality or an adequate compensation to the consumer for the recalled product (at least equal to the price paid by the consumer);
- Laying down provisions concerning the rights of product safety supervisory authorities (the Commission for Protection of Competition and administrative bodies competent for specific categories of products subject to Union harmonization legislation) – such as right of planned or surprise inspections, access to premises, documents and information, right to request remedial actions, right to sanction non-conforming traders and others.
A new type of civil action pursuant to the Class Action Directive
Recognizing that the current class action regulation under the Bulgarian Civil Procedure Code (“CPC”) falls short of the standards set by the Class Action Directive for representative actions protecting the collective interests of consumers, with the proposed changes the Council of Ministers aims to introduce a new type of civil action, instead of overhauling the class action framework within the CPC.
The main changes introduced with the action for the protection of the collective interests of consumers laid down in the CPA and the CPC as compared to the current legal framework are the following:
- An expanded list of claimants that have legal standing to bring an action
The draft amendments seek to broaden the qualified list of claimants eligible to bring class actions to protect the collective interests of consumers. Currently, the list includes qualified Bulgarian consumer organizations, included in a list published by the Bulgarian Minister of Economy and Industry, and consumer organizations from other EU member states – only for infringements committed in Bulgaria which have caused damage in this member state. The proposed additions include transnational consumer organizations dedicated to safeguarding consumer interests across multiple EU member states, as well as the Bulgarian Commission for Protection of Competition.
- Wider scope of admissible subject matters of the collective action
The draft bill significantly expands the range of admissible subject matters of the representative actions for the protection of the collective interests of consumers – to more than 54 legal instruments of Bulgarian and EU law. New subject matters include data protection, financial services, travel and tourism, energy sector issues, telecommunications, and more.
- Additional key changes
As compared to the current class action legislation, the proposed new framework for representative actions to protect the collective interests of consumers introduces several key new aspects in the CPC which differentiate it from the current procedure, such as:
- An obligation for traders to notify all concerned consumers regarding decisions awarding damages against the trader or ordering the cessation of an infringement;
- A pending representative action would suspend applicable limitation periods for all concerned consumers, even if they choose not to participate in the representative action;
- A provision that the final court decision can be used by all parties as evidence in any other action against the trader for the same practice.
By Philip Kiossev, Principal Associate, Eversheds Sutherland Bulgaria
