Justice – Photo by Sora Shimazaki on Pexels
(BRUSSELS) – The EU Commission published a proposal Tuesday which would give consumers and traders the ability to solve their out-of-court disputes in a process which should be simpler, faster and more affordable.
According to the 2023 Consumer scoreboard, a quarter of consumers experienced a problem worthy of complaint but a third of them did not act due to lengthy procedure times, small amounts involved, or low confidence in a satisfactory solution to the problem. This results in only 300,000 eligible disputes annually in the EU.
According to the impact assessment caried out by the Commission, the extension of the scope envisaged by the proposed Directive could bring 100,000 new eligible disputes. It also mandates businesses to respond, potentially bringing another 100,000 disputes.
The rules to modernise rules on consumer Alternative Dispute Resolution (ADR) adapt them to digital markets and expand the range of issues that can be resolved through the ADR Directive out-of-court, including matters related to misleading advertising, access to services and unjustified geoblocking.
To make this option more accessible to consumers, designated bodies such as the European Consumer Centres Network will assist consumers in understanding and accessing alternative dispute resolution procedures. The goal of the proposal is also to expedite the procedures.
Also today, the Commission adopted a Recommendation to align online marketplaces dispute resolution systems with the European standards for fair and efficient Alternative Dispute Resolution. For example, a fair and efficient ADR needs to be transparent about the different steps of the procedure, or ensure that mediators are independent, with no financial conflict of interest.
It also outlines best practices to resolve crossborder disputes for EU-wide trade associations to implement.
Alternative dispute resolution for consumers (europa.eu)
Consumer Conditions Survey of 2021
Report on the application of a Directive on alternative dispute resolution for consumer disputes and Regulation on online dispute resolution for consumer disputes
Impact assessment report (1/2) on the Proposal for a Directive on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828
Evaluation – Impact assessment report (2/2) on the Proposal for a Directive amending Directive 2013/11/EU on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828
