Representative action guidelines: AK Upper Austria calls for improvements in implementation

Linz (OTS) – The EU Representative Actions Directive is intended to fundamentally improve collective legal protection for consumers at the European level. Recognized consumer protection organizations, such as the Chamber of Labor, are able to combine claims in the event of violations by companies that affect a large number of consumers and to assert them in a remedial action. “However, the current draft law to implement the directive only partially meets this goal“, says AK President Andreas Stangl.

In principle, the proposed changes are to be welcomed by consumers, said Stangl. “The broad scope of application of the injunction to all violations that affect or threaten to harm the collective interests of consumers and the suspension of the statute of limitations associated with the proceedings are very significant improvements“, says the President of the Upper Austrian Chamber of Labor.

Minimum requirement of 50 consumers when filing a lawsuit is too restrictive
However, a lawsuit can only be filed if at least 50 consumers are affected. This massively limits the effectiveness of the regulations to proceedings with a large number of injured parties. “This means that the new representative action is useless in many casessays Stangl. He demands: “The minimum quota must be reduced to five consumers so that the new remedy can also be used in the interests of consumer protection.“

Suspension of the statute of limitations for all representative actions
The new collective action suspends the statute of limitations. For example, if claims were time-barred after three years, they can still be asserted after three years if the injunction action has a positive outcome. The prerequisite for this is that the affected consumers take part in the new collective action for remedy in a timely manner by reporting to AK Consumer Protection.

This new representative action for injunctive relief is intended to leave the representative actions existing under current Austrian law unaffected. “The same suspension of the statute of limitations must then also be applied to the existing legal enforcement instruments so that our consumer advocates can best help those affected to obtain their rights“, demands the AK President.

Legal regulation of a request for removal of consequences
In previous association proceedings, it was always difficult to inform the affected consumers about the judgment and the positive legal consequences for them. President Stangl therefore suggests: “The additional legal regulation of a request for removal of consequences in the event of injunctive relief is required.This means that if companies engage in illegal behavior, they can be obliged to inform all affected consumers about the judgment and its legal consequences (e.g. claims for reimbursement).

Questions & Contact:

Chamber of Labor Upper Austria – Communication
Mag. Dominik Bittendorfer
+43 (0)664-82 37 978
dominik.bittendorfer@akooe.at
ooe.arbeiterkammer.at