Swiss Parliament Blocks Collective Lawsuits, Rejecting Consumer Rights Expansion
Bern, Switzerland – The Swiss Council of States today rejected a proposal to establish collective complaints, effectively denying consumers and small businesses a key legal tool for seeking redress against corporate wrongdoing. The decision ends twelve years of debate and follows a similar rejection by the National Council, halting the implementation of a system allowing groups to jointly file lawsuits.
the proposed legislation would have enabled collective action, similar to class-action lawsuits common in other countries, allowing individuals with similar grievances to pool resources and pursue legal claims together.Supporters argued it was a “minimum solution” to address power imbalances between large corporations and individual claimants. Justice Minister Beat Jans advocated for the project, stating risks cited by opponents were “not based on any concrete element” and pointing to the absence of abuse in European countries with similar systems.
Despite these arguments, and support from the left and a centrist faction, the Council of States sided with the majority who expressed concerns about potential abuse and frivolous lawsuits.
The rejection follows a recent case where Swiss owners affected by the Volkswagen “dieselgate” scandal were denied compensation, highlighting the limitations faced by individuals pursuing legal action against large multinational companies. Fabien Fivaz cited the existing collective action taken by 3,500 shareholders against UBS regarding the Credit Suisse buyout as an example of the potential benefits of expanded collective action.
Consumer organizations have strongly condemned the decision,denouncing it as “a denial of large-scale justice” and stating Bern prioritizes the interests of large economic groups over those of consumers and smes. They predict an increase in “judicial tourism,” with Swiss claimants seeking legal recourse in other European countries, citing the example of hundreds of Swiss hoteliers who have joined a collective procedure in the Netherlands against Booking.com.
The Alliance of consumer organizations lamented that the core of the project was “never discussed” during four years of parliamentary commission blockages. The decision effectively concludes a twelve-year effort to introduce collective complaints to the Swiss legal system.