France will adopt class action lawsuits for the first time

With the French consumer associations pushing for the change, class action lawsuits will soon be introduced into France's legal system. A legislation was drafted by French Minister of Economy, Finance, and Industry Thierry Breton during a weekly cabinet meeting November 8.
Currently, each claimant must be named individually in a lawsuit wherein the French consumers can be collectively represented by a legitimate association.

This time around, class actions still will only be brought by national consumer associations. If court decides to hear the initial claim, additional claimants can be added to the suit. The French version of class actions will be limited to goods or services valued less than 2000 euros ($2,550). Notably, the bill would exclude health-related issues.

Last January 2005, French President Jacques Chirac advocated the adoption of class actions aimed at filling the gap in consumer rights. Chirac however stressed the point of “avoiding the abuses of the Anglo-Saxon system," a reference mainly to alleged class action abuses of the American legal system.

On September this year, France's Competition Council heeded Chirac’s proposal by recommending the establishment of class action lawsuits to counterbalance abuses by powerful companies.

The proposal is not without resistance particularly the business sector, citing concerns over its potential impact on the economy. However, hopes are high that the legislation will merit approval before the end of the current parliamentary session in February 2007.

French consumer associations are lobbying the idea on note that this would allow consumers who feel they have been wronged or cheated to take companies to court collectively, rather than being forced to bring individual lawsuits.

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