Kollektiver Rechtsschutz in Japan

Abstract

In consumer disputes, it is often unlikely that consumers will take legal action against businesses themselves due to the imbalance in information and bargaining power, as well as the disproportionate costs involved. Therefore, collective redress mechanisms that allow consumer protection organizations to take legal action on behalf of consumers seem useful. In Japan, an instrument for collective redress was introduced in 2016 on the basis of the Act on Special Measures Concerning Civil Court Proceedings for the Collective Redress for Damage Incurred by Consumers.

The compensation procedure is structured in two steps: the first stage involves litigation seeking a declaratory judgment on common obligations of the business operator, and the second is a simplified proceeding for determining the claims. At the first stage, it is determined whether a business operator has an abstract payment obligation towards a plurality of consumers in connection with consumer contracts. At the second stage, if such an obligation exists, a determination is made promptly on whether and to what extent individual consumers are entitled to a payment. At both stages, the proceedings are conducted by a specified qualified consumer organization that has been certified by the prime minister.

However, since its introduction, this compensation procedure has hardly been used. In light of this situation, the committee responsible for conducting a review of the law pointed out the need for strong support. As a result, a legislative amendment was passed in 2022 that essentially incorporates compensation for pain and suffering, expands the group of defendants, adopts a flexible approach to settlements, and strengthens the public disclosure of information to consumers.

Nevertheless, challenges remain. The funding of specified qualified consumer organizations is weak, and aid from the government is therefore called for. In addition, the claims that can be asserted under the compensation procedure remain significantly limited, thus leaving room for renewed consideration. Constructive cooperation between all relevant parties is needed in order to further develop this instrument.

(The editors)