Heading: Trade Leadrs’ Guide and Mediator’s Diary

According to the 2021 Consumer Conditions Survey, only 5% of EU consumers – approximately 2.250 million people – who encountered a problem when purchasing a product or service and took follow-up action, reported it to an alternative dispute resolution body (ADR). The study also highlights that recourse to such bodies varies from 0% to 12% across Member States.

On October 17, 2023, the European Commission adopted a proposal to amend Directive 2013/11/EU on alternative consumer dispute resolution, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828 Mr.

The proposal includes the following changes:

Extended scope of application

The extended scope applicationrepresents the most important change in the proposed directive, which is in two main directions: material and geographical.

In terms of material scope, ADR will include non-contractual and pre-contractual situations (including supply of digital content and service contracts. Although

As regards the geographical scope, the reference to the geographical establishment of the traders will be deleted, i.e. A "cross-border dispute" will include one between a consumer resident in an EU Member State and a trader established within outside the EU.

Increasing the powers of ADR structures and encouraging traders to participate in ADR

ADR structures may combine user cases of a common type into a single procedure, provided that the users do not object.

Traders will be obliged to respond to complaints and the deadline will be a maximum of 20 working days. The merchant must inform whether he intends to participate in an ADR procedure.

Member States are empowered to introduce national legislation that would make it mandatory for traders to participate in ADR procedures in specific sectors, beyond the application of analogous obligations in sector-specific Union legislation.

Incentives for users to participate in ADR

An opportunity to follow up on complaints submitted by users is envisaged. Vulnerable consumers should have access to "readily accessible tools" as well as access to a non-digital complaint procedure upon request.

It also guarantees the right of consumers and merchants to have the ADR decision reviewed by an individual when the ADR procedure is performed by artificial intelligence.

The facilitation of cross-border ADR procedures

The right of consumers and traders to obtain assistance in accessing the competent ADR in the event of a cross-border dispute will be guaranteed. Member States will designate a single ADR contact point to assist parties in finding an appropriate ADR authority. It will also be possible to transfer responsibility for the operation of such contact points to the network of European consumer centers, or alternatively to consumer organizations or any other organization responsible for consumer protection.

In Parliament, the report was referred to the IMCO Committee, which adopted it unanimously on 22 February 2024.

A significant change in the report amending the ADR Directive is the obligation for air carriers covered by Regulation (EC) 261/2004 to participate in ADR procedures.

We will follow the further development of the votes with interest. It is expected that by the end of Belgium's presidency, the amendment to the ADR Directive will be tabled for second reading. If this is not done, it will be carried over to next year during the Hungarian Presidency.

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