Economy

Closing loophole: Kazakhstan’s plan to secure refunds from global brands

Kazakhstan to force global brands to refund defective products
Kazakhstan to force global brands to refund defective products / Photo by Delia Aidaralieva, photo editor: Adelina Mamedova

Kazakh consumers often cannot obtain compensation from major international companies — even in cases involving proven defects. While courts in other countries have forced corporations to pay billions in damages, consumers in Kazakhstan are frequently left without recourse. Lawmakers are now looking to change that.

Kazakhstan’s lower house of parliament recently discussed introducing a class action lawsuit mechanism.

Officials cite global precedents

Rustam Akhmetov, first deputy chairman of the Agency for the Protection and Development of Competition, pointed to international examples. Apple has paid compensation to U.S. consumers — including about $25 per claimant — over defective iPhones. Volkswagen has issued refunds to customers in multiple countries over defective vehicles, and Toyota has faced similar claims.

Such outcomes, he noted, were made possible by the availability of class action lawsuits.

«The Kazakhstani consumer is not protected. We are also consumers of iPhones, Toyota and Volkswagen,» Akhmetov said.

Why class actions matter

Officials say introducing class actions could shift the balance between consumers and large corporations. When companies know that consumers can band together and file a collective lawsuit, they are more likely to settle disputes or offer compensation proactively.

Without that mechanism, experts say, it is often more cost-effective for corporations to ignore individual complaints — since few consumers are willing or able to pursue separate legal cases on their own.