In article 4 of the draft directive, the harmonised criteria for the recognition of qualified institutions are mentioned. Institutions must be properly established under the applicable law of the respective member state. Furthermore, they must have a charitable character and are-not allowed to strive for pecuniary rewards. They must also have an entitled interest on guaranteeing the compliance of relevant regulations of the union. The mentioned criteria are supposed to be fulfilled to guarantee a proper representation of consumer interests.

Member countries can decide domestically about the requirements regarding qualified institutions as long as the criteria correspond with the aims of the draft directive. In terms of supranational suits, the qualified institutions need to fulfil the requirements of the draft directive.

Furthermore, the draft directive intends a mutual acknowledgement between the Member States regarding the recognition of qualified institutions (article 16).

The list of qualified institutions must be accessible in a public register.