Monthly Archives: March 2013

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Lawmakers Propose Reforming Class Action Laws to Fight Price Fixing

Government officials recently stated that existing laws do not extend enough protection to people who have become victims to price fixing. Several lawmakers are proposing revisions to the law that would make it easier for consumers and businesses to file class action lawsuits against companies who use abusive pricing schemes.

The government has consulted with a number of experts. They have come to the conclusion that existing competition laws are antiquated and ineffective. They hope that the changes they make can provide the necessary protections to consumers and businesses throughout the country. The biggest problem with the existing law is the complexity of the bureaucracy. Consumers must invest substantial amounts of money to launch class action lawsuits and spend months or years trying to navigate the legal system.

The new law would stipulate that all competition cases would be heard by the Competition Appeal Tribunal. This would allow plaintiffs to get justice in a timelier and more cost-effective manner. This new venue would also be beneficial to many small and medium sized businesses that have had a difficult time filing anti-competition lawsuits against larger companies.

The new system would also automatically include all consumers in a class-action lawsuit unless they expressly stated that they do not want to be part of it. The government feels that this will encourage more people to participate in lawsuits.

The new system would also institute new safeguards to prevent plaintiffs from filing frivolous lawsuits. These include prohibiting plaintiffs from paying contingency fees to lawyers in class-action lawsuits. The new law would also require a judge to certify any claim before it could go to trial.

The new reforms would only apply to competition cases. However, lawmakers could consider extending them to other cases in future years if they are satisfied with the new system.