What is changing in the ADR Directive and why traders should care
In November 2025, the Council of the EU approved the final text of the revised Alternative Dispute Resolution (ADR) Directive. The text is expected to be adopted by the European Parliament and published in early 2026. After that, Member States will have to transpose it into national law.
In short – the political decision is taken and it is only a matter of time before the new rules become binding.
Wider material and geographical scope
The revised Directive significantly extends the scope of disputes that can go to ADR:
- Pre-contractual situations. This includes situations from the pre-contractual phase, where no transaction has yet taken place between the consumer and the trader. Such cases involve unfair commercial practices, such as misleading information about the price, additional costs that were not disclosed in advance, or other purchase-related terms intended to mislead the consumer
- Contracts where the consumer “pays” with personal data instead of money are included– this covers many “free” digital services.
- Disputes related to digital content and digital services are expressly covered.
The geographical scope expands too. ADR bodies will be able to handle disputes involving traders from third countries, if certain conditions are met: a joint request by the parties, the trader’s consent to apply the law of the consumer’s country of residence, and acceptance of the ADR body’s procedural rules.
For many business models – subscription platforms, apps, cross-border online shops – this means that consumer disputes will more often end up in ADR, including disputes against Bulgarian traders who sell abroad.
New obligations for ADR bodies – and indirect impact on traders
The Directive does not regulate only traders. ADR bodies themselves receive new responsibilities, such as:
- informing parties about their right to request a review of the ADR outcome;
- the option to bundle similar cases, if consumers are informed and the body has capacity;
- handling domestic, cross-border and third-country trader disputes;
- ensuring that personal data processing complies with GDPR;
- publishing activity reports at least every two years.
For traders this means one thing: more structured and traceable procedures and less room for “we did not understand what this body wants from us”.
Digital requirements for ADR bodies
The Directive also sets digital standards for ADR:
- ADR websites must allow online submission of complaints and documents, in a way that allows tracking.
- Consumers must be able to choose digital or non-digital means of participation.
- Procedures must be accessible and inclusive (for example in terms of disability, language, etc.).
For traders this translates into more communication through well-organised digital channels with clear deadlines and notifications.
Use of automated tools and the right to human review
Another notable change is the treatment of automated tools, including algorithmic decision systems:
- ADR bodies must clearly inform parties in advance if automated tools are used.
- Both consumer and trader have the right to request a human review of the outcome.
- Article 22 GDPR on automated decision-making continues to apply.
So even if part of the case assessment is automated, traders retain the right to have a human look at the file and the proposed outcome.
The big news for traders: duty to reply
The key change for business is the new duty to reply to ADR bodies.
Any trader against whom a complaint has been made and from whom an ADR body requests information will have a legal obligation to respond within a set period – even if the trader decides not to participate in ADR. Ignoring the ADR body and “hoping it goes away” stops being an acceptable option.
In the next part we will look at:
- the deadlines,
- what counts as a reply,
- what happens if a trader remains silent.