The European Commission (EC) presented its proposal to modernize and simplify rules on out-of-court dispute resolution to make it fit for digital markets and make it more consumer-friendly. Specifically the Alternative Dispute Resolution (ADR) Directive will be adjusted to expand the range of issues it can resolve, such as issues related to misleading advertising, access to services and unjustified geo-blocking. Designated bodies such as the European Consumer Centers Network are to assist consumers in understanding and accessing alternative dispute resolution procedures and help to speed them up.
The proposal encompasses the following aspects:
- Expanding the scope of the Directive: The revised ADR Directive will be set to cover all aspects of EU consumer law and extend its reach to non-EU traders, addressing unfair practices like manipulative interfaces, manipulative advertising, or geo-blocking rules.
- Incentivizing the participation of businesses: Businesses will continue to be free to decide whether to participate in alternative dispute resolution or not, unless EU law or national legislation imposes trader participation. However, if consumers ask for ADR intervention, the business will be obliged to reply within 20 working days. This is to speed up the overall process and encourage trader participation while reducing information obligations for traders.
- Improving consumer assistance: Consumers and especially vulnerable ones will receive customized support to launch their case, from translation, to explanations on the procedure, fees, or physical documentation. Member States will designate contact points to facilitate communication between consumers and traders, assist with the procedure, and provide general information on EU consumer rights and means of redress.
Ursula Pachl, BEUC Deputy Director General, commented: "Resolving disputes out-of-court must be a simple, fast, and affordable option for consumers to settle an issue with a trader and get a remedy – for example, if a shop refuses to reimburse or fix a faulty washing machine. However, ADR is still under-developed in many countries, partly because traders aren’t obliged to participate and because consumers and traders are not sufficiently aware that it’s an option. Today’s proposal is insufficient. What we need to see now are improvements for a more ambitious reform. We trust the European legislators will deliver on this."
Source: EC & BEUC
More information and BEUC press release