EU Plans More Powers for Consumers to Sue Companies

(From Reuters)

The European Union plans more powers for consumers to sue firms like Volkswagen (VOWG_p.DE) after the Dieselgate scandal showed the limits of consumer protection authorities to curb corporate cheating.

Wednesday’s proposal by the EU executive would give consumer groups the ability to launch collective action on behalf of clients and hand consumer protection authorities stronger powers to sanctions rule breakers.

Amid frustration in Brussels with rule-flouting by powerful industries like tech and carmakers, fines will increase to up to four percent of annual turnover for companies deemed to have trampled on the rights of a large group of consumers.

“In a globalized world where the big companies have a huge advantage over individual consumers we need to level the odds,” Europe’s Justice Commissioner Vera Jourova said.

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