The Diet on Dec. 4 enacted a law that sets the procedure for class-action lawsuits aimed at helping consumers who have suffered financial damage from unscrupulous sales methods receive compensation from firms that caused the damage. Under the law, a qualified consumer organization will file a damages lawsuit on behalf of consumers.

The government and other organizations concerned should make sufficient preparations so that consumers will be fully informed about the new law and can easily utilize it. The law is expected to take effect in about three years.

In 2006, a system for lawsuits by consumers was first introduced that allowed consumers to file class-action lawsuits for cessation of such practices as unjust solicitation by firms through the provision of false information about their products and contracts that include a clause that requires the payment of an exorbitant financial penalty for breach of contract.