OLG Hamm now responsible for consumer association actions
With immediate effect, the Hamm Higher Regional Court has sole jurisdiction for all class actions brought by consumer associations in North Rhine-Westphalia. This was announced by the court on Friday. "The new law on representative actions is intended to make it easier to clarify and enforce consumer claims," said a spokesperson. The Hamm Higher Regional Court was already responsible for model declaratory actions. From now on, so-called redress actions will also land there. These are also known as class actions or collective actions.
Since 2018, consumers have had the opportunity to take collective action against companies with the help of consumer associations with the model declaratory action. The proceedings can end with a settlement or a judgment. The NRW consumer advice center sees a model declaratory action as a disadvantage for consumers because companies are not initially obliged to take any action or cease and desist as a result of a ruling. The established rights would still have to be asserted individually before a court.
The redress action is different: the form of action introduced in Germany four weeks ago is intended to facilitate joint actions against corporations. Consumer advice centers can use it to directly claim compensation for many consumers collectively. In contrast to the model declaratory action, the money is paid out directly to consumers in the event of a successful redress action. At least 50 consumers must be affected in order to file a redress action. The redress actions are intended to help consumers in mass proceedings to obtain their rights more quickly, for example in the event of flight delays, unlawful account fees or defective product ranges.
The new law on representative actions transferred to the Hamm Higher Regional Court aims to enhance justice for consumers by simplifying the clarification and enforcement of consumer claims. With the introduction of redress actions, companies might now face direct compensation claims from consumer associations on behalf of a significant number of affected consumers.
Source: www.dpa.com
