General aspects of class actions under Law N.19.496: from compensation to regulation

Abstract

This paper analyses the Chilean class action system considering the comparative context. Our thesis is that our system transitioned from a compensatory emphasis to a predominantly regulatory one but without the inherent proper controls of a regulatory system. With that target, a general approach to the class action concept and history is first undertaken, followed by a description of the underlying principles through a comparative review. Having identified the compensatory and regulatory justifications, the second part addresses the above-mentioned thesis. This, by analyzing the collective procedure of Law No. 19.496 and examining its subsequent legal reforms, which entails delving into modifications concerning available remedies and the involvement of private parties in the system. Finally, the paper presents the risks derived from a shift in emphasis towards a regulatory approach without the necessary control mechanisms.