Alternative dispute resolution for consumer disputes

Three years ago, the European Union adopted legislation on alternative dispute resolution for consumer disputes (“ADR”) and online dispute resolution for consumer disputes (“ODR”) to allow consumers and traders to resolve their disputes without going to court in an easy, fast and inexpensive way. However, it was not until this year that this European regime was implemented and became fully operational.

“Alternative dispute resolution for consumer disputes” is any intervention by an entity which proposes a solution or brings together the relevant parties, in each case in view of facilitating the finding of an amicable solution to a national or cross-border dispute between a consumer and a trader arising from a sales contract or a service contract. ODR is a specific ADR procedure conducted entirely online through a dedicated ODR platform operated by the European Commission which offers consumers and traders a single point of entry for the out-of-court resolution of online disputes.

To find out more about the new alternative dispute resolution framework, the applicable procedure, the additional obligations imposed on consumer-facing professionals and potential sanctions in case of non-compliance, please click here.

For further information please contact Guy Loesch or Nicki Kayser.