A representative action is the locus standing of a third-party. This means that the third-party does not appear as a legal advisor but sues for a foreign right in its own name. The plaintiff assigns his/her right to bring a suit to the association which appears as the plaintiff on trial. Above the declaration of a violation of a legally protected matter, claims for damages can get through. A representative action does not only portray the assignment of a legal proceeding. It also represents the support of the involved person by sharing the mental burden of the proceeding or even completely taking over the burden. There is a legal representative action as well as an arbitrary representative action. The difference between the two is that the legal representative action is scheduled in relevant laws while the arbitrary representative action is chosen and is only possible under certain conditions. Within the arbitrary representative action, the legal entity whose rights have been violated, authorizes a person or an association to conduct the legal proceeding.

A representative action distinguishes itself from a group action, which is further explained here.

At first, the representative person needs to be authorized by the involved person. This results in the principle that an involved person needs to sue for themselves. Furthermore, the representative person must have an interest worth protecting to assert the rights of the involved person. Significant reasons for a representative action are required. The representative person is not allowed to participate in the proceeding outside of the representative action to avoid a conflict of interests. The representative person is not allowed to be a joint plaintiff or the representative of the opposing side. This does not exclude the acquisition of a benefit in case of a successful lawsuit. It is important that the interests of the association do not contradict the interests of the involved person.

The general regulation that the party who loses the proceeding has to pay for legal costs is valid. The legal costs compromise of court costs and costs regarding legal advice and representation. Legal costs include the costs of the opposing side. Since the affected person is not the plaintiff within a representative action, the representative person carries the risk for the legal costs.

The German Equality for Persons with Disabilities Act (BGG), as well as the German Social Code intend a legal representative action for associations in Germany. A new legal representative action has been introduced through the Berlin State Anti-Discrimination Act at a regional state level.