ABSTRACT

This chapter provides an overview on existing literature concerning the strengths and weaknesses of different enforcement systems for consumer law. It demonstrates how the previously defined enforcement mechanisms score. A procedure in a civil court entails mainly court and lawyers fees. The individual and social costs-benefit analyses for filing a lawsuit may be different, and, therefore, the danger of under-enforcement must be considered, particularly in cases of small and widespread harm. In practice, civil procedural law has restricted cases regarding prescription periods or causation issues. In the way the ADR mechanism is currently constructed, the pre-existence of civil courts is required. The ADR mechanism provides the desired lower enforcement cost for the individual because the procedures are less formal and may be subsidised by the state or the industry. Generally, free riding is less of an issue in ADR because the financial risks involved in this type of litigation are much lower.