German consumers will be able to sue manufacturers and service providers by way of representative action starting on 1 November 2018 – just in time to suspend the statute of limitations of consumer claims based on the exhaust emissions scandal. This new law won't be the last step Germany will take towards allowing "consumer class actions" because it is by no means enough to implement the planned EU Directive on representative actions (2018/089 (COD)).

While large claims are already being aggregated by different law firms and claims vehicles, this new representative action structure may lead to more small claims being filed. Consumers will still need to file individually for damages because the new representative action will only establish liability, not damages.

Read our client alert.

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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