Legal Services

April 2004

The Social Policy Council as early as next month will begin in-depth discussions on a legal framework enabling consumer protection entities to file class action suits against companies on behalf of individuals. With incidents involving problematic sales techniques on the rise, the panel seeks to alleviate the frustration of consumers unable take legal action on their own. A research committee to address the issue will be formed pending a council meeting Friday. The committee will consist of about a dozen members, including academics, attorneys, and representatives of industry and consumer protection groups. The conditions for granting legal standing to consumer groups will be among the issues discussed. The committee's findings will be released by December, and the system could be in place by fiscal 2006. (The Nihon Keizai Shimbun; April 16 2004)

A government panel on Tuesday decided to endorse a proposal that would establish a national licensing system for private-sector alternative dispute resolution (ADR) entities, as part of efforts to nurture and strengthen methods of conflict resolution outside the courtroom. The plan supported by the Office for Promotion of Justice System Reform would give legal effect, including enforcement powers, to mediation and arbitration decisions issued by licensed organizations. A committee to be established Monday will draft an ADR bill that outlines the function and scope of authority for these entities. The necessary legislation is expected to be submitted during the extraordinary Diet session slated for the fall. In alternative dispute resolution, private-sector organizations and administrative bodies mediate or arbitrate disputes in procedures that are simplified compared with trials. While there are such entities as mediation centers run by bar associations as well as those that handle product liability issues, their decisions have no legal weight, so they have generally not been used by the public. (The Nihon Keizai Shimbun; 14 April 2004)