Class Actions for Consumers in Germany

Class Actions for Consumers in Germany

Starting November 1, 2018, consumers in Germany will be able to use consumer class actions against service providers and manufacturers. This type of class action proceeding, will be a representative action that can be brought by a consumer protection organization to seek declaratory judgment against the manufacturers and service providers. Should the consumers wish to claim damages, they will be required to individually file a claim against the company after a declaratory judgment has been decided in a consumer class action suit.

As the consumer class action is a new type of action for German courts, there will be strict legal requirements that must be fulfilled before the class action may be filed. Only a few existing consumer protection organizations may bring a class action, and these organizations:

(1)   must have had protected consumers for a minimum of four years,

(2)   may not receive more than 5% of their funding from corporations, and

(3)   may not file the class actions in order to make a profit.

Furthermore, in order for the class action to be processed, within two months of class action’s public announcement, at least fifty affected consumers must have registered.