Things You Need to Know About Consumer Class Action Lawsuits

Consumer Rights

By Deinah Storm

There are some instances as a consumer where you may be a victim of unlawful practice. Some cases are too severe that they may prompt the affected party to file a lawsuit. Unfortunately, not everyone is capable of affording the cost of one.

A class-action lawsuit can give consumers that can’t afford to spend for filing a lawsuit a chance to seek justice. This kind of legal proceeding is designed to accommodate a group of people to file charges against a company or individual who violated their consumer rights, among other rights as citizens of the world. Governments around the world have seen many cases like these involving consumer laws throughout history.

Everyone is a consumer and has the rights to uphold. If you’re looking to do that in court, you have a more feasible choice to lean on. To inform yourself better about it, here are the things you need to know about consumer class action lawsuits.

What are class action lawsuits?

This kind of lawsuit is often filed against employers, government entities, manufacturers, or retailers. It’s created to help multiple plaintiffs to claim restitution or any type of compensation for damages that are too small to be worthwhile for an individual. Many consumer class action lawsuits are based on allegations of defective products or false advertising.

By law, a group-based claim can pursue economic or financial losses that were products of violations of laws that protect consumers. A similar product or service usually causes these losses. Typical outcomes of these lawsuits include class action settlements, bans, or restrictions.

How does a class action lawsuit work?

A class action lawsuit involves a group or a “class” that will collectively file the charges. The class will then choose a representative who will take the lead in the case. He’ll represent the class and present the same allegations as the other plaintiffs to the defendant inside the courtroom.

Before the lawsuit can proceed, the class must be certified by a judge. Once the class is notified that the suit is a go, the lead must prove to the court that their class has a valid claim against the defendant, along with the similarity of each of their allegations. Together with their chosen or given council, the lead must also show that the lawsuit is enough to represent the entire class.

There may come a time during the hearings where other class members will be allowed to participate. That usually happens when the court requires it so all plaintiffs can receive compensation.

What happens when the lawsuit is successful?

Provided that you win the lawsuit, the class will receive restitution subject to the court’s approval. You can also appeal if your group didn’t feel like the offered compensation is just. Once the settlement is approved, the plaintiffs will receive the payment several months after adjourning.

Once the settlement is approved, a distribution scheme will be implemented to ensure that the plaintiffs receive the proper amount. The scheme will contain rules on how the payment will be divided among the members of the class.

Wrapping up

With the help of legal counsel, anyone can file a class-action lawsuit based on substantial allegations. Using the strength in numbers, consumers can seek justice for any breach of their consumer rights. Every consumer deserves protection and the option to fight for what they feel is right.

 

About the Author

Deinah StormDeinah Storm used to work in the corporate world as a marketing affiliate. She quit her job to pursue her passion for writing, but to this day, Deinah is committed to educating consumers about the different marketing scams and how to avoid them.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.