The Luxembourg Trade Confederation (CLC) and the Luxembourg Consumer Assocation (ULC) have both reacted to the announcement.
The director of the Luxembourg Trade Confederation, Nicolas Henckes, expressed his scepticism at the introduction of class action suits, citing the risks linked to these. According to Henckes, this is an incredibly complex subject and Luxembourg should not be seeking purely Luxembourgish solutions. Instead, Henckes stressed that class actions lawsuits should only be regulated on a European level. The CLC is above all concerned that the government will go its own way.
Henckes went on to recommend that the government take up discussions with both consumers and company bosses, as the latter will have concerns. He went on to explain that certain sectors have specific issues and that a quick introduction of class action lawsuits would not be desirable for these.
As an example of one of the risks that such an introduction could bring, Henckes cited a possible wave of complaints from outside of Luxembourg. If Luxembourg gains a reputation as having legislation incredibly favourable towards consumers, external consumers could begin 'forum shopping' in Luxembourg, which would be detrimental towards Luxembourgish companies.
He also stressed the need to clarify specific legislative aspects, such as protecting companies' rights to the presumption of innocence. Finally, Henckes stressed that he hoped the government would not only open discussions with the ULC, but also include company bosses. The CLC will wait for the new minister to contact the federation, which has not yet happened.
The Luxembourg Consumer Association is one of the privileged partners in the initial discussions concerning the upcoming legislation, according to Minister Paulette Lenert. The ULC has already expressed its joy at the creation of an independent ministry for consumer protection. Nico Hoffmann, the president of the ULC, also welcomed the announcement of introducing class action suits.
The association has been waiting for a minister to take the path of class action suits for a long time. As for the concerns expressed by company bosses, Hoffmann responded that everybody should wait to see the actual reality of the announcement before jumping to conclusions.
For instance, Hoffmann is confident that the legislation will not lead to a trend of class action suits. Citing the VW Dieselgate file, Hoffmann explained that four people had to file lawsuits on their own, which costs time, money, and nerves. In this case, a class action suit could be an effective solution.
As for Henckes' proposal for a European solution, Hoffmann believed that this process would take too long and that consumers should not have to wait that long to access their rights. With the European elections in May, Hoffmann believes that a European solution could be further delayed.
Globally, the ULC is delighted at the creation of the ministry for consumer protection. It shows that consumer protection is a measure which becomes more visible and important, no longer an afterthought for a different ministry.
