The current Directive 2013/11/EU takes a minimum harmonisation approach to define the requirements to qualify an entity as an ADR body, as well as to the procedural rules that apply to the ‘out of court’ resolution of disputes stemming from sales or service contracts between a trader and a consumer where both are established in the EU. These requirements entail an obligation of expertise, independence and impartiality on the natural persons in charge of the cases, as well as specific result obligations that should ensure the procedural rules and ADR organisations are transparent, effective and fair.
The directive also regulates the extent of the binding effects of ADR. The outcome of ADR is not binding when an agreement between the trader and the consumer has been concluded before the materialisation of the dispute. Also, the binding effect of the dispute requires the previous information and specific agreement by both parties. Each Member State is responsible for designating a competent authority to check the compliance of the entities requesting recognition as an ADR.
The proposal follows up on Regulation (EU) 524/2013 of 21 May 2013 on online dispute resolution for consumer disputes, which established the online dispute resolution digital platform, developed and operated by the Commission. The platform provides a single point of entry for consumers and traders seeking out-of-court dispute resolution. However, digital marketplaces’ development of online complaint solutions has seen use of the platform fall to around 200 complaints per year.
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