Court rulings and alternative dispute resolution schemes (ADRs) are traditional ways of resolving consumer complaints. However, new remedies such as collective redress are gaining more recognition as national markets merge in the EU. It is a question of achieving a fully functioning single market for consumers and business alike, says Henrik Øe, Danish Consumer Ombudsman.
While traditional ways of obtaining redress are often costly and difficult (e.g. court rulings) or not enforceable in court (e.g. ADR schemes), Henrik Øe advanced collective redress at EU level as a possible remedy to overcome barriers to a fully functioning internal market where claims are small and uniform and suffered by a large group of consumers.
Collective redress mechanisms exhibit some of the properties needed to aid consumers achieve a fast solution to a collective consumer problem. However, a number of questions arise in relation to the need and use of collective redress. Although in many ways clearly a step forward in terms of enhancing consumer protection, safeguards are needed to avoid actions based on unfounded claims.
In other words, balancing consumer and business interests respectively is a key point – and one that needs to be addressed.
More information?
See Henrik Øe’s preliminary remarks from the BERR Conference 'Improving Consumer Redress: Collective Actions and ADR Solutions' held 8 May 2008 (pdf) at the BERR's conference homepage (www.berr.gov.uk).