Alternative dispute resolution for consumer disputes (Directive on consumer ADR)

The Council took note of the progress made on a draft Directive on Alternative Dispute Resolution (ADR) and a draft Regulation on Online Dispute Resolution (ODR), following the agreement reached on a general approach on 30 May.

The proposals aim to provide for simple, fast and affordable out-of-court settlement procedures for resolving disputes between consumers and traders arising from the sales of goods and services, through the intervention of an alternative dispute resolution entity.

ADR schemes help consumers engaged in disputes which they have been unable to resolve directly with the trader. These mechanisms have been developed differently across the EU, both publicly and privately, and the status of the decisions adopted by these bodies differs greatly. The initiative will ensure that ADR schemes are established where they are currently lacking and that consumers will always have the possibility of taking their disputes to an ADR.

A provisional agreement was reached between representatives of the European Parliament and the Council following informal negotiations that took place at the “trialogue” (a meeting between the Parliament, the Council and the Commission) of 5 December 2012. The first-reading agreement on both proposals will have to be confirmed by the co-legislators in accordance with their respective internal procedures.