Still smarting from Volkswagen's wait-and-see attitude, refusing to compensate European consumers who have fallen victim to the scandal of rigged diesel engine tests even though it compensated American consumers, the European Consumer Organisation has written to the President of the European Commission, Jean-Claude Juncker, to call upon the Commission to present a legislative proposal on a collective redress system at EU level.
The letter, dated 11 October and disclosed on the same day, takes the Commission President at his word, his State of the Union speech having criticised the conduct of the automotive industry and stating that he is “shocked when consumers are knowingly and deliberately misled” and calling on the car industry to “come clean and make it right”.
“It's high time that a collective redress system is set up at EU level. This is a crucial tool for consumers to get compensation when a company's actions lead to mass damage. Given VW's scandalous behaviour, it's only right that consumers can band together and seek justice. In too few countries is it possible though. This sends the wrong message that cheating does not have real consequences for business in Europe”, said Monique Goyens, Director General of BEUC,, in a press release.
In the letter, she stresses that Volkswagen's “fraudulent actions” have affected the value of millions of consumers' cars, who must be compensated, and that only Italy, Belgium, Spain and Portugal have relatively well-functioning collective redress systems in place.
“It is unacceptable that misled consumers in other member states are left without an affordable and practical solution. Not only is it unfair to those consumers, but it also manifestly demonstrates the lack of a single market”, she went on to stress.
There are increasing numbers of initiatives by consumer associations to obtain compensation through the courts (see EUROPE 11863). The idea of a European-style collective redress system, which had the support of the European Parliament in 2012, has never seen the light of day (see EUROPE 11545). The simple, non-binding recommendation to the member states, which was adopted in 2013, is to be assessed before the end of the year (see EUROPE 11842). (Original version in French by Aminata Niang)