Theory Of Group Action Mode

With the development of globalization and the approaching of China's entrance to WTO, more products from abroad are imported to China. Therefore, disputes arise frequently due to defective products. Compared with Class Action in U.S., Representative Action in China has some defects such as high transaction cost, which include contract cost, control cost and information cost. Moreover, the Representative Action can't function well due to lack of a system of interest stimulation. We can find its function faults in TOSHIBA Issue.Through observation, we find that the purposes of Group Actions in the world can be classified into two types: to protect personal interest and to protect social interest. Hence, Group Actions can be divided into two models: individual-benefitting Group Actions and public-benefitting Group Actions. The developed countries, such as the U.S., have established public- benefitting Group Actions, whereas our country still remains at the stage of individual-benefitting Group Actions. Therefore, drawing on other countries' experience to protect the interests of Chinese consumers we must reform the system of Representative Action.