The UK Regulations aim to increase awareness and
use of ADR for resolving consumer disputes, rather
than issuing court proceedings.
creating obligations to provide ADR
for any dispute concerning contractual
obligations between a consumer and a
business or trader.
The European ADR Directive and ODR
Regulation
• he principal obligation on the UK
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Government under the ADR Directive
is to ensure that ADR, provided by
a certified ADR body, is available for
any contractual dispute between a
consumer and a business.
• he ADR Directive does not make
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ADR mandatory, and does not force
businesses or consumers to use ADR.
However it must be available if both
parties agree to use it.
• urrent ADR providers have the option
C
to become certified ADR providers
under the ADR Directive, although they
do not have to become one. The ADR
Directive will require consumers to be
signposted to certified ADR providers
in all sectors. Certified ADR providers
must offer ADR free of charge or for a
small fee, conclude disputes within 90
days of receiving the complaint file and
employ trained and independent staff
to handle the disputes.
• usinesses and traders will be required
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to provide information about relevant
certified ADR providers on their
websites or sales contracts in certain
circumstances, and in the event of
an unresolved dispute, all businesses
must provide information about
certified ADR providers.
• or cross-border disputes, the ODR
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Regulation provides for the creation of
an online dispute resolution platform
to enable online communication,
including mediation and negotiation
between parties and a certified ADR
provider. Once a dispute is submitted
online, they will be put in contact with
a national ADR provider who will help
resolve the dispute. The UK has to
designate an online dispute resolution
contact point to assist with disputes,
which will need to be referred to by
online traders.
The UK has implemented the ADR
Directive into the Alternative Dispute
Regulation for Consumer Disputes
(Competent Authorities and Information)
Regulations 2015. The main parts
relevant to traders come into force on 9
July 2015.
The UK Regulations aim to increase
awareness and use of ADR for resolving
consumer disputes, rather than issuing
court proceedings. If will help to ‘fill the
gap’ in consumer areas where there is
no current ADR system in place. It also
aims to ensure that certified providers
are available to handle such disputes.
However the Regulations do not make it
mandatory for traders to offer consumers
access to ADR nor do they entitle
consumers to force traders to use ADR,
unless the trader is a member of a trade
association or professional body which
requires ADR to be provided.
What should traders do before 9 July
2015?
• raders and businesses should review
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their website, terms and conditions
and service contracts, and any
trade associations rules and dispute
resolution requirements, to ensure
that they are complaint with the UK
Regulation.
• If a Trader or business is obliged to use
ADR through its terms and conditions
and /or trade association rules, or
has voluntarily agreed to use an ADR
provider, it must provide the names
and contact details for that ADR entity
on its website and in its terms and
conditions or sales / service contracts.
• Online traders must inform customers
of the ADR option and provide a link to
the online dispute resolution contact
point on their website by January 2016.
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