Revision of the ZPO - Chance for improved legal protection
Most people and a large proportion of SMEs are effectively excluded from the justice system in Switzerland today. The current civil procedure law sets the hurdles for a lawsuit so high that usually only large companies and the wealthy bear the costs of proceedings. With the consultation process for the new Code of Civil Procedure (CCP), the debate on rules that are enormously important for everyone, citizens and companies alike, begins today.
In 2011, Consumer Protection President Prisca Birrer-Heimo submitted a Motion to anchor collective legal protection in Switzerland. The OrderIt took the Federal Council a full four years to finally present its bill today.
Progress for consumers and companies
Consumer protection essentially welcomes the thrust of the bill. Sara Stalder, Director of Consumer Protection: "The bill has the potential to improve the protection of the rights of consumers and small businesses in particular". Consumer protection welcomes the planned reduction in court costs and the further development of collective legal protection. However, resistance from many large corporations is to be expected: The fact that customers cannot defend themselves is more advantageous for them. On closer inspection, however, the proposal is also interesting for large companies. Prisca Birrer-Heimo: "Companies acting in good faith are at a competitive disadvantage compared to large companies. unscrupulous competitors. They benefit from unlawfully obtained profits because customers cannot reclaim them in court."
Reduction of the process risk
The litigation risk is particularly high when the amount in dispute is low, as the court costs usually exceed this. Halving the advance payment for court costs is therefore a pragmatic step in the right direction. Consumer protection also welcomes the fact that the plaintiff no longer has to bear the insolvency risk of the defendant. The defendant is obliged to refund the advance on costs paid by the victorious plaintiff. However, if the defendant is insolvent in the meantime, the plaintiff is left with the court costs under the current regulation. The state should now again reimburse the advance on costs paid to the plaintiff.
Collective legal protection
Through his commitment to the Dieselgate lawsuit project against VW and Amag (Editor's note: see editorial SAFETY-PLUS 1/2018), consumer protection is well aware of the shortcomings of the ZPO with regard to collective legal protection: the legal situation is precarious. A corporation such as Volkswagen, for example, can rely on the fact that it will not be held accountable for unfair practices thanks to the high hurdles of civil procedural law. Consumers are powerless.
Among other things, the existing right to sue associations is to be supplemented with an action for damages. And consumers and SMEs will receive Mass damage the possibility of negotiating a collective settlement with an alleged tortfeasor. "The fact that the Federal Council is not proposing a class action based on the American model is a good thing," emphasizes Sara Stalder. "It is a small but overdue improvement to the Swiss legal situation."
Text: Foundation for Consumer Protection
