News Letter

Impact that the new Japanese class-action system may have on foreign companies that conduct business in Japan or that hope to conduct business in JapanVol.03


authorKouhei Yabuta , Erwin Condez , Kaoru Akeda
practice areasCorporate , Corporate Restructuring and Reorganization
publication date2014.12.25

The Act on Special Provisions of Civil Court Procedures for Collective Recovery of Property Damage of Consumers (“Collective Recovery Act”) was passed by the legislature in December 4, 2013, and is set to take effect in 2016.

The Collective Recovery Act is a recent change to the law relating to Japan's class-action litigation procedures, and allows Special Qualified Consumer Organizations to sue business operators on behalf of consumers and to collect damages upon prevailing in a class-action lawsuit. While the new statute has the effect of enhancing consumer protection, it comes with an increased likelihood that business operators will have to address consumer compensation claims.

In this newsletter, we will provide you with information concerning the revisions to the Japanese class-action system that will soon be in effect and their potential impact on foreign companies that conduct business or hope to conduct business in Japan, and hope that it will allow you to better understand the risks before the Collective Recovery Act takes effect.

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