Collective protection of consumer rights in Japan
Abstract
In 2001 Japan enforced the Consumer Contract Law. According to which under certain circumstances declarations of intentions by consumers can be withdrawn or consumer contract clauses are void. The regulations are substantial law and a mechanism to realize consumer rights under usual proceedings of Civil Procedure Law. However - already at that time - the efficient aid for consumer rights was a problem. This was due to the fact that it was only thought of as individual aid, even if individual consumers file claims against businesses. Furthermore it was understood as not sufficiently helping against group damages and deterring from them.
After that - in June 2007, considering trends in German and EU law, an injunction right for qualified consumer organization was introduced into the Consumer Contract Law as one plan to make aid for consumer damage more efficient. Through this reform the system of the Consumer Class Action was realized for the first time.
Also in practice some claims have been accepted based on the injunction right for consumer organizations. Following the enactment of the act on Specified Commercial Transactions Reform on the 1.12.2009 the consumer organisation injunction right was also admitted in relation to “Door-to-Door Sales”, “Mail-Order Sales”, “Telemarketing Sales”, ”Multilevel Marketing Transactions”, “Specified Continuous Service Offers” and “Business Opportunity Related Sales Transactions”. Because of the granted right to claim, consumer organisation activities deserve special attention.
Furthermore, from the viewpoint of aid for consumer group damages, it is discussed to admit a right to consumer organisations against businesses to disgorge undue profits. Also it is discussed to plan the protection of rights by individual consumers. Finally it will become necessary to examine the judicial character of such claims as well as the ideal method of efficient aid procedures.