EFRI is now approved as a so-called “Qualified Entity” to bring collective redress actions in courts throughout the European Union. Such action under Directive (EU) 2020/1828 can either be an “injunction” or a “redress” measure. “Injunctions” generally prohibit a company from engaging in illegal practices. “Redress” measures allow a European version of a “Class Action”, where thousands of victims could be represented by EFRI and ask for damages for illegal activities.
Approval in Austria, Effective Throughout the EU
EFRI’s approval as a Qualified Entity to bring cross-border actions was granted by the Austrian authorities, effective March 31, 2025. This status empowers EFRI to initiate enforcement proceedings across all EU Member States. Under the Directive, an organization approved in one Member State is authorized to act throughout the entire EU. The aim is to strengthen independent enforcement of EU law, particularly in cases of financial fraud and consumer protection related to cybercrime. Here you can find our registration in the relevant EU registry.
EFRI, which has long advocated for justice on behalf of small investors and victims of cybercrime, will now gain a powerful legal tool to directly challenge abusive practices, especially those by financial institutions and platforms that have misled or harmed EU consumers.
Injunctive Measures
As a Qualified Entity, EFRI issue injunctive measures under Article 8 of the Directive (resp. § 5 Autrian QEG). These measures compel companies to cease illegal activities such as misleading advertising, fraudulent investment offerings, supporting scammers with financial services. In many cases, EFRI will initially contact a company requesting a “cease and desist” agreement. If this is refused, EFRI may initiate legal proceedings in any Member State where the company operates.
Such injunctions have been used effectively by consumer organizations for decades. The new legal framework will now allow EFRI to also target digital fraud schemes, fraud enablers and predatory practices targeting retail investors.
Redress Measures
EFRI’s new status also allows for the initiation of redress actions—claims for compensation for damages caused by companies acting in breach of EU law. In the financial sector, this could involve recovering lost investments in fraud by Financial Crime Enablers (like Payvision BV, Kobenhavn Andelskasse,…).
Most EU countries require an “opt-in” system, where individuals actively join the action. Some countries, however—such as the Netherlands offer an “opt-out” model, meaning consumers are automatically represented unless they object.
EFRI`s mission
As a long-time advocate for the rights of small investors and victims of online fraud, EFRI has worked for years to prepare for this step. The organization has built the legal, technical, and organizational infrastructure needed to bring these actions to court. The official QE status marks a significant milestone, expanding EFRI’s ability to take direct legal action on behalf of affected consumers.
EFRI plans to file its first collective cases soon. Unsurprisingly we plan to go against payment service providers that have facilitated online scams for years while ignoring clear fraud signals. These actions could finally offer financial redress to thousands of victims across Europe who would otherwise have no access to justice.
