![Alternative dispute resolution [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/02/EPRS-Briefing-757639-Alternative-dispute-resolution-FINAL.png?fit=1000%2C714&ssl=1)
Written by David Ashton (4th edition, updated on 27.08.2025).
Alternative dispute resolution (ADR) is a process allowing complaints to be settled out of court with the assistance of an impartial dispute resolution body. Through ADR, consumers can settle a complaint against a trader for breach of contract, outside court procedures, assisted by impartial, neutral dispute mediation, arbitration or conciliation.
Since 2013, the share of e‑commerce in the EU economy has increased significantly, up from 2 % to 4 % of EU gross domestic product (GDP), increasing the relevance of ADR for consumers. Each year, approximately 300 000 eligible disputes between consumers and traders are examined by ADR entities, with resolution rates between 17 % and 100 % across the Member States.
On 17 October 2023, the European Commission adopted a proposal for a directive amending several directives pertaining to consumer rights and ADR. The proposal pursues three objectives, to: adapt the ADR legislative framework to digital markets; facilitate the use of ADR in cross-border disputes; and simplify ADR procedures.
In the European Parliament, the file was referred to the Committee on the Internal Market and Consumer Protection (IMCO). On 26 June 2025, the co-legislators reached a political agreement. This agreement was approved by Coreper on 16 July 2025. Pending confirmation by the IMCO Committee, work is ongoing to finalise the text of the act before the Council closes its first reading.
Complete version
- August 2025: ‘Alternative dispute resolution‘ (4th edition)
| Proposal for a directive amending Directive 2013/11/EU on alternative dispute resolution, Directive (EU) 2015/2302 on package travel and linked travel arrangements, Directive (EU) 2019/2161 as regards the better enforcement and modernisation of Union consumer protection rules, and (EU) 2020/1828 on representative actions for the protection of the collective interests of consumers | ||
| Committee responsible: | Internal Market and Consumer Protection (IMCO) | COM(2023) 649 17.10.2023 |
| Rapporteur: | Laura Ballarin Cereza (S&D, Spain) | 2023/0376(COD) |
| Shadow rapporteurs: | Inese Vaidere (EPP, Latvia) Filip Turek (PfE, Czechia) Gheorghe Piperea (ECR, Romania) Stéphanie Yon-Courtin (Renew, France) Katrin Langensiepen (Greens/EFA, Germany) Hanna Gedin (The Left, Sweden) | Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’) |
| Next steps expected: | Adoption of the Council’s first-reading position | |
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