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Class action facts for kids

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A class action is a special kind of lawsuit where a large group of people with a similar problem or complaint team up. Instead of each person suing separately, one person from the group represents everyone. This makes it easier and more efficient to solve problems that affect many people.

What is a Class Action Lawsuit?

Imagine a company sells a product that turns out to be faulty, and thousands of people buy it. Instead of each person filing their own lawsuit, a class action allows one person to sue the company on behalf of all the affected buyers. This group of people is called the "class."

Why Use a Class Action?

Class actions are useful for several reasons:

  • Efficiency: It saves time and money for both the courts and the people involved. One case is handled instead of many.
  • Fairness: It helps people who might not be able to afford a lawyer on their own.
  • Holding big groups accountable: It allows many small claims to become one big claim, which can make a bigger impact against large companies or organizations.

Where Did Class Actions Start?

Class actions first became popular in the United States. They are still most common there. However, many other countries have started to use similar types of lawsuits.

Class Actions Around the World

  • Europe: Some European countries, especially those with civil law systems, now let groups like consumer organizations bring lawsuits for consumers. This helps protect people who buy products or services.
  • China: In 1991, China passed a law allowing class actions.
  • Brazil: Brazil has seen class action lawsuits against industries, banks, and other organizations. These lawsuits have dealt with issues like environmental damage, product defects, and false advertising. However, judges in Brazil usually award smaller amounts of money for damages compared to the U.S.

The History of Group Lawsuits

Before modern class actions, there were "group litigations" in England as far back as the 13th century. These involved groups of people suing or being sued together in court. It was practical because travel was slow and difficult back then. Handling one group case was much easier than many individual cases. By the 18th century, individual lawsuits became the usual way to go to court.

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