Collective Redress Project Progress in Collective Redress Mechanisms in Environmental and Consumer Mass Harm Situations

Compensatory relief

Compensatory relief is essential for the efficient enforcement of consumer rights; therefore, it is a very negative conclusion that such instruments hardly exist in practice. Both the Slovakian and Hungarian consumer organisations have attempted to file compensatory claims but the courts usually reject the claims, for in Slovakia due to the deficiencies in the legislation, and in Hungary due to the reluctance of the court. From November 2012, it seemed that consumer organisations in Slovakia were entitled to claim monetary compensation in favour of consumers, because of the wording of the Slovak Consumer Protection Act; however, a court decision emphasised that the existence of unjust enrichment cannot be hypothetical and consumer organisations, as parties to the suits, cannot claim compensation in favour of consumers, because they do not represent them. The Act was quickly amended in June 2013 by removing the rights of consumer organisations to file compensatory claims. In Hungary, consumer organisations have been entitled since 1997 to ask for the restoration of the situation prior to the violation (in integrum restitutio) in the injunction claim; but, according to the experiences of the consumer protection organisations, the courts usually ruled only on unlawfulness, but hesitated to uphold the compensatory claim. In the Czech Republic and Poland, consumer protection organizations are not entitled at all to file actions for compensation of consumers for damage suffered, though our Polish partner NGO is using individual test-case proceedings to achieve individual compensation, on which basis it could help in similar cases for harmed consumers. As a better example of a functioning compensation system, we can highlight the public compensation measures regarding unfair commercial practices and unlawful practices by the Polish Competition Authority; however, traders regularly appeal against compensatory measures at court, and to what results these appeals will lead, cannot be predicted yet.

Nevertheless, the question should be posed, of why consumer organisations are not entitled to bring collective enforcement claims, if the violation was committed by the same trader; and if they are so entitled, as in Hungary, why these claims are unsuccessful. Procedural economy would support such resolutions.

 

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