The French government says it will allow class action lawsuits against companies for misselling and over-charging, part of a package to boost consumer rights after recent scandals including the mislabelling of horsemeat, reports Reuters.
The new rules stop short of health and environmental matters which have yielded huge settlements in the United States, and which the law may be revised to cover.
Like his conservative predecessors, Socialist President Francois Hollande had promised since his 2012 election campaign to introduce class action, and pressure on consumers has added impetus. Household spending, the traditional source of growth in the euro zone's No. 2 economy, is falling alongside soaring unemployment.
Presenting the package, Consumer Affairs Minister Benoit Hamon said on Thursday the threat of such suits would act as a "weapon of mass dissuasion" for companies in conflicts with consumers.
"It will push a lot of companies to seek mediation with consumers rather than settle conflicts in court," he said.
Under the legislation, fines for companies found guilty of fraud could reach 10 percent of their sales.
Corporate fraud has become a sensitive issue after French meat processors were found to be at the center of a Europe-wide scandal over mislabeled frozen meals containing horsemeat.
Read more of this report from Reuters.