Thursday 8 December 2011

Consumers: class actions should be made easier

Area of Law: Civil Procedure
Legal Tip of 01/12/2011
The Federal Consumer Association (vzbv) requires efficient remedies for the enforcement of consumer rights. Would be easier especially for consumer class actions. "We need the possibility that similar cases be decided in court bundle," said Gerd Billen vzbv-Chairman on the occasion of a consultation process of the European Union to the European class action, which probably begins in late January 2011.

News about the price increases made clear the limits of energy supply, the association legal standing, according to the association. Provider announced price increases could, consumer associations can not be seen for the consumer, whether they are admissible. Affected would have to pay initially, subject or individually sue, even though it related to a variety of similar case. This is costly and blocking the courts. Therefore urge the vzbv a pragmatic design approval process. Thus, in his view could be unique to clarify whether a claim is justified in principle.

Action also exists in the siphoning off of profits unjustly, the consumer advocates. On a claim existed since 2004. However, he was in such a way that he hardly discouraging frivolous operating companies. For he shall focus on only when proving a violation of causality between competition and let excess proceeds. In addition, the plaintiff must present proof that the company has acted intentionally anti-competitive. Both are loud vzbv in practice almost impossible. The legislature should in his view, therefore, facilitate the proof.

Also, it was important to improve compensation available to consumers. Since 1977, consumers' organizations could with the AGB-injunction act against anti-consumer clauses. A successful injunction strength while the position of affected customers. Prefer, however, no direct reimbursement of claims for, the association complained. It often go to small claims, which would be active because of the financial costs of an action only a few consumers. The result is that unfair profits remained with the company. "In order invalid clauses, the court may request that the victims are compensated for," Billen asks why.

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