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Hensler, Deborah R. --- "Using Class Actions to Enforce Consumer Protection Law" [2010] ELECD 182; in Howells, Geraint; Ramsay, Iain; Wihelmsson, Thomas; Kraft, David (eds), "Handbook of Research on International Consumer Law" (Edward Elgar Publishing, 2010)

Book Title: Handbook of Research on International Consumer Law

Editor(s): Howells, Geraint; Ramsay, Iain; Wihelmsson, Thomas; Kraft, David

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847201287

Section: Chapter 17

Section Title: Using Class Actions to Enforce Consumer Protection Law

Author(s): Hensler, Deborah R.

Number of pages: 22

Extract:

17. Using class actions to enforce consumer
protection law
Deborah R. Hensler*



1. Introduction
In most consumer protection legal regimes, the preferred strategy for imple-
mentation is public enforcement. But the need for enforcement often outstrips
the financial resources that enforcement officials and agencies have available.
Where manufacturers and service providers actively oppose enforcement, they
may be able to use their political influence to drastically limit public expendi-
tures for enforcement. In extreme instances, business actors may be able to
restrict agencies' power to regulate certain areas of the economy entirely.
Moreover, regulatory agencies may attract personnel who served previously in
the business sectors that the agencies are charged with regulating or who hope
to move into such sectors after they complete their public service. Such prior
history or hopes for future employment may diminish these public officials'
interest in aggressively enforcing consumer protection law. In sum, both
theory and experience suggest that public enforcement will often not suffice to
limit violations of consumer protection law.1
In addition, in many instances, public enforcement agencies do not have the
authority, expertise or resources necessary to design and implement
programmes to reimburse consumers who have suffered losses as a result of
violations of consumer protection laws. Some agencies are authorised to levy
financial penalties, which may have an important deterrent effect and can be
used to provide subsidies for useful consumer education and protection
programs. But the individuals who actually suffered financial harm as a result
of illegal business behaviour often ...