The European Commission intends to present a legislative proposal for Europe-wide class actions next week. In this way, Commission wanted to strengn consumer protection two and a half years after discovery of Volkswagen emissions scandal, newspapers of Funke Media Group, citing a draft consumer protection directive.
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In future cases of “mass damage”, consumer protection organisations and or associations could, on behalf of injured customers, take legal action against companies, it is refore stated in legislative proposal. The organizations did not need a mandate at first, but y should not work in a profit-oriented manner and would have to disclose ir funding.
Federal Minister Katarina Barley (SPD) had announced possibility of introducing a pattern feststellungsklage in Germany. The federal cabinet is to approve measure in April. Associations could n make it clear to court wher a company is at fault. Consumers would n have to sue ir claims individually.
According to report, draft European Commissioner for Justice and Consumer Protection, Věra Jourová, goes well beyond Barleys plans. In certain cases, associations should also be able to sue for damages. The condition is that damage in individual cases is comparable and identity and number of affected customers is known.
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European companies are critical of introduction of class actions in EU. “There is no reason for us to copy American Sammelklagensystem in which claims without a consumer mandate can be put forward,” said managing director of European Business Association, company Europe, Markus Beyrer, German Press Agency. Experience from United States has shown that in most cases consumers have gone blank and only benefited from law firms.
Consumer protectionists, especially after diesel scandal at Volkswagen and flight deletions at Ryanair, had demanded possibility of class actions. Because individual complaints were often too expensive, consumers were mostly empty. In some EU countries, such collective actions already exist. Jourová had already called for a right to Europe-wide class actions in July.
