AI-translated. Some sections may contain inaccuracies.
At a glance
- With a clear two-thirds majority, the Council of States decided this week not to support the Federal Council's proposal on collective legal protection.
- This puts an end to the attempt to introduce class actions in Switzerland too - in favor of functioning and practicable alternatives.
This week, the Council of States confirmed the recommendation of its Legal Affairs Committee by a clear majority and did not support the bill on collective redress. Class actions were thus definitively rejected as an unsuitable legal instrument for our country.
Danger of waves of lawsuits averted
The introduction of class actions would have created the risk of aggressive new types of lawsuits and led to waves of lawsuits. The victims would not only have been companies, but ultimately also consumers. Experience from other countries clearly shows that class actions primarily benefit lawyers and litigation financiers rather than the actual injured parties.
Focus on proven alternatives
The Swiss legal system already has instruments such as class actions and arbitration proceedings. In addition, the Federal Council should examine how existing arbitration and ombudsman procedures can be strengthened in a targeted manner in order to ensure swift, fair and viable solutions for those affected.
Legal certainty for the business location
With its decision, the Council of States has set the course for legal certainty and an attractive business location. Instead of allowing questionable class actions, Switzerland is focusing on solutions that are practical and benefit all parties involved.
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