Hot Legal Topics — Friday

Period: Last 3 days (Tue–Thu)

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New Legislation / EU Directives

• EU Digital Omnibus Package & Art. 88b GDPR ("Automated Privacy Signals"): As part of the ongoing negotiations on the Digital Omnibus Package, the European Commission is proposing legally binding automated privacy signals [1, 2]. These would allow end devices and browsers to transmit user preferences automatically — such as the rejection of tracking — thereby largely replacing misleading cookie banners [1, 2]. While a coalition of consumer protection organisations supports the measure as a means of curbing systematic data protection violations and "dark patterns," industry associations and major tech companies are attempting to block the provision in the EU Council [2, 3].

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ECJ / Supreme Court — Landmark Judgments

• ECJ strengthens consumer rights against unilateral amendments to standard terms (Case C-669/24): In proceedings against Vodafone, the European Court of Justice held that Article 105(4) of the EU Electronic Communications Directive does not confer on telecommunications providers an independent right to unilaterally modify ongoing contracts [4–6]. The ruling substantially strengthens the position of consumer associations in pending mass redress actions concerning price increases in the telecommunications and services sectors [5, 6].
• BGH on the workshop risk principle in motor vehicle comprehensive insurance (Case IV ZR 235/25): The Federal Court of Justice draws a clear distinction between comprehensive insurance and liability law [7]. A comprehensive insurer is not required to reimburse unnecessary or defective repair work, as its contractual liability is limited to the objectively necessary costs of repair [7]. This has fundamental implications for claims handling practices in large-scale motor vehicle comprehensive insurance losses.
• ECJ on State liability for breach of the obligation to make a reference (Case C-163/24): The ECJ clarifies the conditions under which State liability claims may arise where courts of last instance fail to comply with their obligation under EU law to refer questions for a preliminary ruling [8, 9].
• OLG Frankfurt am Main on review duties of platform operators (Case 16 W 40/26): Review platforms are required, in the event of takedown requests, to provide the businesses concerned with the evidence and supporting documentation demonstrating the existence of an actual customer relationship [10].

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Trends in Litigation Funding & Legal Tech

• New study on consumer legal funding ("Funding Lives, Not Litigation"): A large-scale consumer survey conducted by the Alliance for Responsible Consumer Legal Funding (ARC) reveals that litigation funding for private individuals is used primarily — by more than 73% of respondents — to cover everyday living expenses such as rent, food, and energy costs during protracted personal injury proceedings [11, 12]. Over 90% of respondents indicated they would use this form of funding again [13].
• Litigation funders waive £34 million in UK class action against Google: In the UK collective proceedings against Google, lawyers, litigation funders, and insurers have agreed to waive £34 million in contractual remuneration in order to secure judicial approval of the settlement by the Competition Appeal Tribunal [14].
• Insolvencies and increased regulatory scrutiny of litigation funders: The collapse of UK provider Woodville Consultants — involving £390 million in affected capital — has prompted the Financial Conduct Authority (FCA) to take action against regulatory gaps concerning unregulated bonds marketed to retail investors [14, 15]. Simultaneously, debate is intensifying in the United States around statutory disclosure obligations for litigation funders ("Funding Disclosure Bills") [16].

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