The New German Act on a Collective Redress Mechanism for Consumer Claims
November 5, 2018
On July 12, 2018, the German Bundespräsident promulgated the Act on the Introduction of a Collective Redress Mechanism for Consumer Claims (Gesetz zur Einführung einer zivilprozessualen Musterfeststellungsklage), and it became effective on November 1, 2018.
The purpose of the Act is to improve the enforcement of consumer rights by enabling certain qualified consumer protection associations to bring a representative action on behalf of at least ten consumers and obtain declaratory rulings on the existence of certain elements of a claim, or the absence of certain bars to a claim. These declaratory rulings serve as a basis for a settlement of the claims to be concluded between the consumer and the defendant business, or for further litigation between them.