Monday, March 19, 2007

Business warns EU against class action suits


Business leaders warned Europe against following the US down the route of class action lawsuits yesterday as Brussels stepped up calls for consumers to gain the right of "collective redress" against companies that rip them off or provide defective goods and services.

The fear that Europe might adopt the litigation culture prevalent in the US, with the prospect of high punitive damages, has alarmed business but excited interest from law firms.

Meglena Kuneva, the Euro-pean Union's consumer affairs commissioner, said she wanted to "empower" consumers to pursue Europe-wide claims against companies that provided faulty goods or services.

"I want a citizen in Birmingham to feel as comfortable shopping for a digital camera from a website in Berlin or Budapest as they would in their high street," she said.

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