German Draft Bill for the Introduction of a Collective Redress Mechanism for Consumer Claims

On May 9, 2018, the German federal government proposed a draft bill for the introduction of a collective redress mechanism for consumer claims.

This draft bill aims at improving 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.