You have been formally notified by an accredited consumer association to bring one of your business practices, or clauses in your contractual terms and conditions, into compliance. According to the association’s interpretation, these clauses violate legal provisions and are detrimental to several consumers. Very often, this same association has publicly and actively communicated about its actions, even before you have had a chance to respond.
You are therefore concerned that:
- you could be held liable by this same association in a class action lawsuit,
- the publicity surrounding this legal action, reported in the press, will damage your brand image.
Regulations Regarding Consumer Class Actions
The Hamon Law of March 17, 2014, introduced class action lawsuits in France, inspired by the class action procedure widely used in the United States.
A class action is a legal procedure that allows individuals who have suffered the same harm, caused by a professional, to collectively bring a case before the courts to obtain compensation.
Class actions are codified in Articles L623-1 et seq. of the French Consumer Code. The conditions and procedures for initiating such actions are set out in Decree No. 2014-1081 of September 24, 2014, and explained in the circular of September 26, 2014, from the Ministry of Justice:
- a class action can be initiated if at least two consumers believe they have suffered harm resulting from the same breach of duty by a professional;
- the action must be brought by an approved consumer association;
- a class action can only be initiated to obtain compensation for material damages, exclusively for disputes related to consumer affairs or competition law.
Initially intended for consumer matters, class action lawsuits are now also applicable in the health sector, in cases of discrimination (particularly in the workplace), in environmental law, and concerning the protection of personal data.
Since 2014, all lawsuits filed by consumer associations that have achieved very limited results have been accompanied by significant media coverage, which has been detrimental to the reputation of the companies involved.
Companies must protect themselves against this risk of being found liable and also against reputational damage.
Lawyers to prevent any risk of class action lawsuits by these consumer protection associations
Specializing in consumer law and experienced in defending professionals in class action lawsuits, Gouache Avocats assists you in preventing any class action lawsuits and in defending your interests in the event of a class action initiated against you by a consumer protection association.
Gouache Avocats offers several solutions to help you prevent potential class action lawsuits:
- Audits of B2C contracts to identify potentially unfair terms or sources of disputes, as well as analysis of past litigation with consumers to prevent the risk of new lawsuits;
- Assistance in organizing follow-up on complaints submitted to customer service to establish a risk typology and create an alert procedure;
- Assistance in setting up online reputation monitoring of class action lawsuits in the sector to prevent any similar actions.
Lawyers to defend you in the event of a consumer class action lawsuit against your company
Gouache Avocats also defends your interests if a class action lawsuit is initiated against you.
In general, a class action lawsuit operates in two phases: the court’s review of the admissibility of the action, and then the court’s determination of the merits of the case. During the admissibility review phase of the action, Gouache Avocats assists you in verifying that the consumer association has standing to sue, particularly with regard to its bylaws, and that the summons meets the admissibility requirements set forth in the Consumer Code.
Regarding the merits of the case, their expertise in consumer law makes them the best ally to defend your business practices and address the legal issues at the heart of the class action.
The firm’s intervention will allow you to:
- anticipate any issue that could give rise to a class action,
- stop the association’s action during the pre-litigation phase by responding to each argument raised in the formal notice,
- have the class action dismissed on the grounds of admissibility or the merits of the case,
- and protect your brand image.
Guillaume Gouachon
Avocat associé
Responsible "Consommation, produits et conformité"
Martine Behar Touchais
Professeur de droit Of counsel
Responsible "Distribution & Concurrence"
