New law
on alternative dispute resolution
Consumer rights are important
when problems arise between
a consumer and a trader
(including retailers and
distributors.
If a problem or dispute arises, a
consumer should first notify the trader
to try to resolve that dispute direct.
If they cannot resolve the dispute
between them, then there are few
options open to the consumer. Legal
advice is important to determine what
options you have and how much they
will cost. Court proceedings can be
expensive, particularly given the recent
increase in court issue fees. Some trade
associations, for example the Association
of British Travel Agents (ABTA), already
provide a form of alternative dispute
resolution (ADR) which they are obliged
to use if the consumer requests.
However some traders do not provide
any recourse to ADR, leaving the
consumer with little option but the court
system to try to resolve its dispute.
ADR (alternative dispute resolution)
can include mediation, conciliation and
arbitration, as well as negotiation to try
to find a resolution to a dispute without
involving the court. ADR is often much
cheaper and less stressful and timeconsuming than court proceedings,
and can help continuing or future
relationships between the consumer and
the trader.
The Alternative Dispute Resolution for
Consumer Disputes (ADR Directive) and
Online Dispute Resolution for Consumer
Disputes (ODR Regulation) aims to
address this and assist consumers by
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