Consumer Collective Redress in Bosnia and Herzegovina: A Mechanism (Still) Waiting to Be Triggered

Abstract

Bosnia and Herzegovina has been one of the first European states to introduce a generous consumer collective redress mechanism. It was established under the influence of the EU, the United States and former Yugoslav law. The legislation of Bosnia and Herzegovina provides an excellent opportunity to examine to which extent the collective redress remedies emanating from different legal traditions may co-exist and function together. The number and variety of collective consumer remedies in Bosnia and Herzegovina is quite impressive. But the mechanism has still not been used because of the weaknesses of those who are supposed to trigger it. The very generous solutions for consumer associations and a specialized Ombudsman for Consumer Protection, both with wide powers to initiate collective proceedings, have not proved to be sufficient. The lack of appropriate funding has so far been an obstacle that is too great for any collective initiative. It also does not help that legislation allows traders to file for compensation in the case of unfounded collective claims when the reputation and business of the trader have been seriously harmed. The new EU Directive on consumer representative actions will certainly require further reforms in Bosnia and Herzegovina, especially with regard to collective claims for damages. This will provide the legislator with the opportunity not only to introduce more options for collective redress, but also to add the missing pieces of the jigsaw so that the mechanism finally fulfils its purpose of providing legal protection for consumers.