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Filing Consumer Group Action Now Possible without Court Approval

Written: 2021-10-19 15:20:39Updated: 2021-10-19 15:44:49

Filing Consumer Group Action Now Possible without Court Approval

Photo : KBS News

Filing a consumer group action will now become possible without court approval. 

The Fair Trade Commission(FTC) said Tuesday that revisions to the Framework Act on Consumers that enable such a move were passed at a Cabinet meeting. 

Consumer group action is a system in which an organization, stipulated by law, can request the suspension of a business’ unlawful activities for the sake of public interest. 

It differs from a class action lawsuit in that consumer group action aims to prevent and block damage to consumers while the former seeks to secure compensation. 

There have only been eight cases in which consumer group action or group litigation were filed since the system’s implementation in 2008, given the strict conditions and procedures required.

The latest revisions sought to scrap securing court approval to file group litigation.

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