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One against all: from October 1, the company can sue thousands of consumers

Not for long did the music play: not for long did developers “throw” their shareholders, services-car owners, and banks-borrowers. On October 1, 2019, Law No. 191-FZ of the civil procedure code of the Russian Federation came into force with all amendments and additions, which made it possible to file a class action for individuals. The article explains what to expect from this innovation for business
What does it mean?

This means that now 20, 30, 50 disgruntled consumers can file a class action against a single company. First of all, this unleashes their hands — in no other sphere do people fail as often as in the consumer sphere. Judge for yourself-millions use the services of banks, thousands buy cosmetics of the same brand, and hundreds invest their money in building houses.Now let’s add to this the requirements for class actions:
disappointed plaintiffs — at least 20 people;
all of the plaintiffs with the defendant;
the same rights of everyone are violated;
the requirements of each plaintiff to the defendant are identical or similar.
Everything fits together, ladies and gentlemen — we clearly see the ideal model of consumer protection. This means that it will become even more difficult for companies to violate their obligations: unscrupulous companies risk getting instant fame not at the expense of high quality, service, or anything else — “kosyachny” companies will get scandalized all over the country. After all, at first, class actions will definitely be widely covered.

Why did they do it?

Unload the courts, of course. Let’s estimate that somewhere XXX company sells lipstick for 150 rubles, which causes dry lips or irritation. Take these introductory notes and assume that this lipstick is bought by a lot of people every month. Without class-action lawsuits, the courts would be inundated with identical lawsuits from hundreds of people — with similar claims and against a single company. Now such a question can be closed at once — in one sitting to meet the requirements of the plaintiffs, and the defendant ten times in the courts do not drive.

Plus, there is a second reason, not too obvious: I regret to state the fact that we have spied all the innovations in the judicial system from abroad. We peeped and look — and how do they implement it? So, in the United States, in the first ten years of class-action lawsuits, law firms raised $16 billion on them. In the States, Philip Morris is paying $79.5 million in court, Tesla is paying $5 million, and Visa and Mastercard have paid as much as $6.2 billion in a class-action lawsuit. Of course, we are unlikely to live up to this scale — such amounts of payments seem very exaggerated and inflated. But the fact that the company can be reined in, or even buried, I personally do not cancel.

What can we expect?

The innovation is full of “pros” and “cons”. Among the “advantages” – real assistance to the courts, absolute protection of consumers and the ability to solve all issues at once. Companies will “pull up” and will hold their faces, because it has become very fraught to mow now.

“Cons” can be clearly defined in the near future, namely, at the moment when we will have at least one completed class action, on the basis of which it will be possible to clearly disassemble everything on the shelves. But even without it we are at risk:
consumer terrorism is a practice that doesn’t fit in my head, and no one has canceled it. It is disgusting if the law is used wrongly and will rip off companies that work honestly and clearly;
absurd claims and demands — the way American companies are forced to go on about it and pay crazy money just because they are large, seems strange to me. I do not think that we will put this on stream, but the first precedents have already appeared — did you know that not so long ago a person filed a lawsuit against MTS for 30 billion rubles for writing off free minutes from the package? Free minutes, Carl! And 30 billion rubles of damage. Apparently, moral.
The first claims will probably be small-like buying lipstick, as I wrote above. Small, but extremely noisy — I am sure that at first class actions will receive unrealistic pr support and extensive media coverage. Therefore, friends-entrepreneurs, pull up and do not give a reason to consumers, because now this reason is absolutely legal for them.

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