Alternative dispute resolution (ADR) helps consumers resolve disputes with traders when they have a problem with a product or service that they bought e.g. when a trader refuses to repair a product or to make a refund to which a consumer is entitled.
ADR is a way of working together to resolve disputes. Where there is a dispute, ADR aims to:
- reduce the time it takes to complete the compliance check,
- reduce the costs for you and us,
- improve your experience when dealing with us ADR also aims to reduce the likelihood of a dispute needing to be decided by a court.
ADR entities are out-of-court (non-judicial) entities. They involve a neutral party (e.g. a conciliator, mediator, arbitrator, ombudsman, complaints board etc.) who proposes or imposes a solution or brings the parties together to help them find a solution.
ADR are usually low-cost, simple and fast procedures and are therefore beneficial to both consumers and traders, who can avoid court costs and procedures. ADR isn’t internal customer complaint service ran by traders. This procedures across the EU encourage consumers to seek solutions to the problems they encounter when buying products and services in the Single Market. This helps them save money that they can invest in a better way.
The ADR Directive has provided full ADR coverage at EU level. This means that there are ADR procedures available for all contractual disputes in every market sector (e.g. travel, banking, dry cleaning) and in every Member State. However the sectors of health and education have not been covered by the ADR Directive.
In addition, all ADR entities have to meet quality criteria which guarantee that they operate in an effective, fair, independent and transparent way.
Those traders who commit or are obliged to use ADR need to inform consumers about ADR on their websites and in their general terms and conditions. All traders need to inform consumers about ADR when a dispute cannot be settled directly between the consumer and the trader.
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Alternative Dispute Resolution
Consumers have the right to access to quality out-of-court bodies, called “ADR entities”, which is ensured by the European legislation …
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