Thursday 21 November 2013

Small Claims, big relief for consumers and SMEs

Over a year ago we mentioned on this blog the importance of a small claims procedure and European plans to reform it (Making the Small Claims Procedure effective). After many months, the European Commission finally published its proposal on how the existing procedure (in force as of 2009) should be adapted to better suit the internal market needs. Consumer and SMEs protection will increase due to the extension of the application scope of this procedure: today only claims below 2.000 Euro may be submitted, but this limit will be raised to 10.000 Euro. This should be especially relevant for SMEs, who often suffer more damage in cross-border trade than consumers (this should cover ca. 50% of business claims). Moreover, it will be easier to claim this procedure due to new, broader definition of what 'cross-border transaction' is and due to lower court fees (not exceeding 10% of the claim's value, with minimum fee not exceeding 35 Euro). Additionally, it will be possible to start this procedure online and to pay court fees online, as well, while email and tele- or videoconferencing will be part of the procedure. (Shopped online and want your money back? Commission Proposal on Small Claims helps consumers and SMEs)