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ARTICLE · 26 OCTOBER 2023

Coming To Life – Germany Ushers In EU Class Actions Directive

Herbert Smith Freehills Kramer LLP
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The Consumer Rights Enforcement Act (Verbraucherrechtedurchsetzungsgesetz) (VDuG) came into force in Germany on 13 October 2023, completing the long overdue implementation...

European UnionLitigation, Mediation & Arbitration
Herbert Smith Freehills
Herbert Smith Freehills

The Consumer Rights Enforcement Act (Verbraucherrechtedurchsetzungsgesetz) (VDuG) came into force in Germany on 13 October 2023, completing the long overdue implementation of the EU Representative Actions Directive.

The VDuG introduces a new class action which, for the first time in Germany, allows consumers to pursue damages claims against companies. The VDuG contains significant amendments compared to the draft bill which was considered in this previous article. The amendments include:

  • Allowing small companies to take part in a class action (in addition to natural persons) only if they employ fewer than 10 people at the time the claim is filed and their annual turnover or annual balance sheet total does not exceed €2 million.

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