The transposition of the Collective Redress Directive in Bulgaria: What to expect

Bulgaria has adopted a fully redesigned collective redress and representative action framework, implementing Directive (EU) 2020/1828 and modifying both the Consumer Protection Act (CPA) and the Civil Procedure Code (CPC).

The reform introduces:

• new rights for qualified organisations to bring national and cross‑border representative actions;
• a modern procedural framework in a new Chapter 33a of the CPC;
• a comprehensive system of registration, oversight and accountability of qualified organisations; and
• broad powers to seek injunctions and redress including compensation, repair, replacement, price reduction, contract termination, refunds.

The reform is driven by the implementation of Directive (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers, which is now embedded in the CPA and reflected in a new Chapter Thirty‑Three “a” of the CPC. The CPC chapter establishes the procedural rules governing how courts should adjudicate representative actions. The result is a dual‑layered structure: a substantive consumer protection regime applicable only to violations of consumer law and actionable solely by qualified organisations, as well as a procedural mechanism in the CPC that governs the adjudication of such actions including admissibility, structure, evidentiary rules and enforcement. Together, these developments constitute the most comprehensive and structured collective actions framework introduced in Bulgaria to date.

1. Executive summary

With the legislative package adopted by Parliament on 21 January 2026 and published in the State Gazette on 3 February 2026, Bulgaria undertakes a comprehensive recalibration of its collective litigation framework. Although the CPC has long contained provisions allowing for collective actions, the reform establishes a dedicated consumer‑focused procedural pathway within the CPC and reconstructs the substantive regime for consumer collective redress within the CPA. Taken together, these amendments give full effect to Directive (EU) 2020/1828 on representative actions and align Bulgaria’s domestic mechanisms with the EU’s harmonised model for handling consumer mass claims. Bulgaria was in significant delay in the transposition – the transposition deadline being 25 December 2022 and the application date was 25 June 2023 ¬– and was facing potential action by the European Commission.

Prior to this reform, collective adjudication in Bulgaria was possible under the CPC’s general architecture, which courts could deploy to manage multi‑claimant disputes and forms of group litigation. However, the existing mechanism was only rarely used, partly due to inefficiency and complexity. The current amendments do not displace this existing toolkit. Instead, they introduce a specialised consumer‑law layer alongside it. Specifically, the CPC now incorporates a new Chapter 33a that standardises the conduct of consumer representative actions, governing all key procedural stages from admissibility and standing to interim measures, opt‑in mechanisms, third party funding regulation, settlements and sanctions for non‑compliance. This dedicated consumer track is designed to operate in coordination with the CPA’s updated rules on standing and remedies and it remains distinct from the CPC’s pre‑existing, non‑sector‑specific collective action regime, which continues to apply to all other forms of collective redress permissible under Bulgarian law.

2. The Consumer Protection Act: A substantive right to collective consumer redress

The revised Chapter Nine of the CPA defines the substantive right of certain organisations to bring representative actions when collective consumer interests are harmed or could be harmed. The CPA establishes who may act as a claimant, what types of violations can be challenged and what remedies may be sought.

2.1 Who has standing to bring a collective consumer redress claim?

Under the amendments, qualified organisations are granted exclusive standing to bring consumer collective actions. These include (i) organisations formally listed by the Bulgarian Minister of Economy and Industry, (ii) the Bulgarian Consumer Protection Commission and (iii) qualified organisations recognised by other EU Member States. The CPA imposes eligibility criteria for inclusion on the national list of qualified organisations. To qualify, organisations must operate on a not for profit basis in pursuit of public benefit objectives, demonstrate at least one year of effective consumer protection activity, maintain an operational consumer reception office, publicly disclose key organisational and financial information and ensure institutional and financial independence from traders including in circumstances involving third party litigation funding. The Bulgarian Minister of Economy and Industry may verify compliance at any time and remove organisations that fail to uphold the statutory criteria. Existing organisations recognised under the pre‑amendment regime must reapply for inclusion.

Once listed, qualified organisations must comply with enhanced transparency and reporting obligations. They are required to publish online information about all representative actions they bring including their progress, scope and final outcome. Qualified organisations must also file annual activity reports with the Bulgarian Minister of Economy and Industry every January, enabling the Ministry to prepare its mandatory annual submission to the European Commission.

2.2 Types of collective redress actions that can be initiated

The CPA defines the types of collective actions that may be brought, namely (i) actions seeking to stop or prohibit practices that infringe collective consumer interests and (ii) actions requesting consumer redress. Redress may take the form of compensation, repair, replacement, price reduction, contract termination or reimbursement of the paid price. Before filing of a collective redress claim, qualified organisations must provide infringing entities with a fourteen‑day written notice, allowing them to voluntarily cease the unlawful practice. The bill further clarifies that the “collective interest” of consumers is not merely the sum of all individual claims but a distinct group‑based interest subject to separate legal protection.

2.3 Other important aspects of the new legislative amendment

The amendments to the CPA introduce explicit provisions regarding the binding effect of decisions issued in other EU Member States, requiring Bulgarian courts and administrative bodies to respect final foreign decisions ordering cessation or prohibition of consumer‑harmful practices. The CPA also provides for the suspension of prescription periods for the duration of a pending representative injunction action, ensuring that individual or follow‑on claims for redress are not time‑barred due to procedural duration.

3. The Civil Procedure Code: The new specialised consumer track

3.1 Procedural framework and standing

Against this substantive background, the CPC’s new Chapter 33a establishes a dedicated procedural framework for consumer collective actions, clearly distinguishing this mechanism from the CPC’s general collective redress regime and other procedural regimes. Standing is expressly limited to qualified organisations as defined under the CPA. The framework also enables coordinated cross‑border collective actions initiated jointly by qualified entities from multiple Member States where the alleged unlawful practice affects consumers in several jurisdictions.

3.2 Admissibility review and safeguards

At the admissibility stage, courts must perform a structured review including verification of the claimant’s qualification status, assessment of the scope and coherence of the claim and scrutiny for potential conflicts of interest including those arising from third‑party litigation funding. Courts are empowered to reject representative actions where the funding structure or other circumstances may compromise the independence or impartiality of the qualified organisation.
Chapter 33a also codifies interim measures powers enabling courts to order immediate cessation of the impugned practice on a prima facie basis to prevent continued or irreparable consumer harm.

3.3 Opt‑in participation model

The chapter adopts an opt‑in participation model. Once the action is admitted, the court mandates appropriate public notices and determines the timelines and modalities through which consumers may join the proceedings. Consumers may opt in only after the court has declared the action admissible and the action may proceed on the merits only if at least ten consumers have joined. Once consumers opt in, they are generally precluded from pursuing parallel individual proceedings based on the same factual and legal grounds, which reinforces procedural economy and ensures consistency of judicial outcomes.

3.4 Costs and sanctions

Consumers who join the action do not bear litigation expenses except in circumstances involving intentional or negligent abuse of process. Failure to comply with a final injunction or a court‑approved settlement may result in administrative monetary sanctions, ensuring the effectiveness and deterrent force of collective redress mechanisms

4. Timing, transitions and practical implications

The legislative package entered into force upon publication on 3 February 2026. Pending proceedings under the repealed CPA sections continue under the previous rules until completion and currently recognised entities must seek re‑listing under the new CPA criteria. The first reporting cycle to the Bulgarian Minister of Economy and Industry and the European Commission begins in 2027, creating a structured information environment around collective actions. For businesses, this means heightened and more predictable exposure to consumer mass claims: the right to seek redress and the remedies available are now embedded in the CPA, while the litigation pathway in the CPC is optimised for speed, consumer access, funding scrutiny and enforceability.

5. Distinguishing between the existing collective redress regimes

It is easy to conflate the two layers when discussing “collective redress”. However, the CPC’s general collective redress framework is a longstanding feature of civil procedure and remains available in non‑consumer matters wherever the law allows claims to be pursued together. The novelty is the CPC’s specialised consumer track, a streamlined procedural pathway designed specifically for representative actions under the CPA. This track operates in tandem with the CPA’s recast substantive regime, which delineates who may bring such actions, the remedies available, the applicable transparency obligations and the cross‑border effects that apply to consumer‑focused proceedings.

6. Impact on businesses and how we may help you prepare

Transposition of the EU Representative Actions Directive (EU) 2020/1828 matters for businesses because it turns dispersed low-value consumer grievances into a scalable enforcement channel. Qualified entities such as consumer organisations or public bodies can bring representative actions, potentially cross-border, seeking both injunctions to stop unlawful practices and redress measures including refunds, compensation, repair or replacement, price reduction and contract termination. As a result, compliance gaps can escalate quickly into high-exposure and high-visibility litigation and settlement pressure.

Wolf Theiss can help businesses prepare by:

• reviewing and stress-testing consumer-facing terms;
• reviewing marketing and product or service compliance against the relevant rules;
• upgrading complaints handling and ADR mechanisms and early remediation processes to prevent mass issues forming;
• advising on tightening evidence retention and internal escalation processes so companies can respond quickly and quantify exposure;
• advising on crisis communications strategies; and
• reviewing insurance coverage including D&O insurances to address enhanced litigation risks.

Should litigation arise, our Litigation team in Bulgaria can provide full-fledged support at all stages of the dispute and any settlement negotiations.

This client alert provides general high‑level guidance and does not constitute legal advice. The implications of the new collective redress regime will vary depending on each client’s particular circumstances and needs.