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Alternative dispute resolution for consumers

Alternative dispute resolution allows consumers and traders settle disputes quickly and inexpensively without going to court.

Revision of the ADR Directive

On 17 October 2023, the Commission adopted a proposal to review the ADR framework by means of: 

  1. a legislative proposal amending the current ADR Directive, 
  2. a legislative proposal to repeal the ODR Regulation, 
  3. a recommendation addressed to online marketplaces and EU trade associations having a dispute resolution mechanism and to Member States.

The objectives of the review are to: 

  • make the ADR framework fit to the digital markets by covering all categories of disputes concerning EU consumer rights;  
  • improve the access to ADR in cross-border disputes through the use of digital tools, assistance to consumers and traders; 
  • simplify ADR procedures to all actors; including reducing reporting obligations of ADR entities and information obligations of traders whilst encouraging traders to increase their engagement in ADR claims through the duty to reply; 
  • discontinue the ODR platform and replace it by user-friendly digital tools to assist consumers in finding a redress tool to resolve their dispute; 
  • incentivise online marketplaces and EU trade associations having a dispute resolution mechanism to get aligned with the quality criteria in the ADR Directive; 

Accompanying the legislative proposals are the following: 

Find all documents on the revision of the ADR Directive

Improvements Current ADR/ODR Framework Proposed Changes
Extension of the scope of the ADR Directive  The Directive only covers disputes stemming from contractual obligations between consumers residing in the EU and traders established in the EU.  The Directive will be applicable to all infringements of EU law with consumer protection dimension e.g. related to misleading price indication, discriminatory practices, issues related to switching of service providers, omission of pre-contractual information, portability of content, remedies related to the right to repair, etc. 
Third-country traders can voluntarily participate in ADR procedures.
Boosting trader Participation in ADR Voluntary trader participation in ADR unless required through EU or national legislation. Voluntary trader participation in ADR remains however traders will have to reply within 20 working days to an ADR entity’s request as to whether they intend to participate in ADR or not. 
Online traders will no longer be required to provide the link to the ODR platform nor to maintain a dedicated email address.
Targeted consumer assistance in cross-border and domestic ADR Consumers can obtain assistance to access cross-border ADR through European Consumer Centres, consumer organisations or other bodies. Member States will designate a European Consumer Centre, consumer organisation or another body as ADR contact points to facilitate communication between the parties, assist with the process, provide the parties and ADR entities with general information on EU consumer rights and on the procedural rules applied by the ADR entities identified or inform of other means of redress when a dispute cannot be resolved through an ADR procedure.
All actors assisting consumers shall act in good faith and provide all necessary information in advance.
The Commission maintains the ODR Platform to enable consumers to resolve their disputes with traders. The ODR platform will be replaced by a digital interactive tool that will direct consumers to consumer redress solutions.
Protection of vulnerable consumers in digital markets   Consumers can submit a complaint and the supporting documents online in a traceable manner and access documents in a non-digital format on demand.
The proposal requires the use of digital ADR procedures through easily accessible and inclusive tools.
More user-friendly and transparent ADR procedures   Parties will have the right to request that the ADR outcome be reviewed by a natural person when the procedure was carried out by automated means.
Possibility for ADR entities to bundle cases with similar elements upon having informed the consumer of this option and given the opportunity to refuse from having the case bundled. 
Rationalised reporting requirements for ADR entities   ADR entities are to publish detailed annual activity reports on their websites. ADR entities will be required to publish condensed activity reports every 2 years.
Information requirements at the notification stage for ADR entities are reduced.
New recommendation to online marketplaces and EU trade associations providing dispute resolution systems    The Commission invites them to align their systems with the quality criteria of the ADR Directive.
In case they use automated procedures to resolve disputes this is made public and they grant the right to the parties of the dispute to request that the outcome be reviewed by a natural person.
They should publish self-assessment reports at regular basis, not exceeding 2 years on how the quality criteria are implemented.

Public consultation

In 2022, the Commission carried out 2 public consultations: one backward-looking and a forward-looking in parallel with the Call for Evidence. Such consultations were carried out in view of the evaluation and the impact assessment accompanying the Commission legislative proposal reforming the ADR/ODR framework. 

Resolving complaints out of court

Alternative dispute resolution (ADR) means settling a complaint out of court with the assistance of an impartial dispute resolution body. Resolving consumer disputes this way is easier, faster and less expensive than going to court.

There are many types of ADR, such as

  • mediation
  • conciliation
  • ombudsmen
  • arbitration
  • complaints boards

Out of court resolution bodies by country

A large number of out of court bodies exist across the EU. Using one of these bodies, you can access ADR for most types of product or service (complaints about healthcare or higher education are not dealt with by these bodies).

It doesn't matter whether you bought the product or service online or in a shop, or whether the trader is based in your country or another EU country.

On the online dispute resolution platform, you can find a list of out of court dispute resolution bodies by country.

ADR Assembly 2021- materials

The ADR Assembly is the biggest consumer ADR event in the EU. For the second edition of the biannual event, which was held on 28 and 29 September 2021, the Commission invited over 400 Alternative Dispute Resolution (ADR) entities and other consumer protection stakeholders for a virtual event.  Materials from the event are available at the links below.

Event presentations and related materials

Video of closing ceremony with conclusions and closing remarks by Commissioner Didier Reynders

31 DECEMBER 2021
2nd ADR Assembly, 28-29 September 2021, Summary Report
English
(421.25 KB - PDF)
Download

Cross-border ADR Roundtable

Given the shift towards online shopping, efficient cross-border out-of-court dispute resolution (ADR) has become more relevant for the smooth functioning of the single market. However, data shows that consumers do not choose cross-border ADR due to various reasons including complex legal, linguistic and procedural issues, low awareness about the benefits of ADR, or because the complaint can only be resolved through the complaint handling mechanism operated by the online platform chosen by the consumer. 

The European Consumer Centres Network (ECC-Net) and the European Commission hosted a roundtable on cross-border ADR. ADR entities, ADR competent authorities, ECCs, academics consumer and trader organisations were invited.

21 JUNE 2022
Final Report - Cross-border ADR Roundtable
English
(353.84 KB - PDF)
Download

Discussion papers

ADR Application reports

In line with Article 26 of the ADR Directive and Article 21(2) of the ODR Regulation, the Commission publishes a joint ADR/ODR application report in which it highlights the development and the use of quality ADR entities and the impact of the ADR and ODR on consumers and traders. This report is based on national ADR reports submitted by the ADR competent authorities to the Commission every 4 years and other data collection actions (dedicated workshops, public consultation, studies, etc).

ADR Application report 2023

ADR Application report 2019

ADR-related studies

 

17 OCTOBER 2023
Information gathering for assisting the Commission in complying with its obligation under Article 26 (“reporting”) of the ADR Directive and Article 21 (“reporting”) of the ODR Regulation
English
(HTML)
Download
24 AUGUST 2022
Executive Summary - Recommendations regarding the future needs of ADR
English
(375.71 KB - PDF)
Download
24 AUGUST 2022
Report - Recommendations regarding the future needs of ADR
English
(1.58 MB - PDF)
Download