Class Actions Now Available In Japan

Japan has enacted its first class actions legislation, following an international trend seen in the European Union and some other countries in Asia. The new class actions law (the Act on Special Measures Concerning Civil Court Proceedings for the Collective Redress for Property Damage Incurred by Consumers) came into force on October 1.

Two-stage process

The new class actions law is distinct from the class action legislation we are familiar with in Canada, and instead contains some features seen in class action legislation in European countries, such as France. The Japanese law is a two-stage procedure and does not allow for individuals to commence class actions themselves. Instead, first, a "Special Qualified Consumer Organization" (which must obtain certification from the Prime Minister) commences litigation under the Act against the company, seeking a declaration that the company is liable for common obligations owed to a "considerable number" of aggrieved