use of ADRs

The current Directive (Directive 2013/11/EU) follows a minimum harmonisation approach to define the requirements for an entity to qualify as an ADR body, as well as the procedural rules that apply to the out of court resolution of disputes stemming from sales contracts or service contracts between a trader and a consumer who are both established in the EU. Such requirements entail an obligation of expertise, independence and impartiality on the natural persons in charge of the cases, as well as specific obligations to ensure the transparency, effectiveness and fairness of the procedural rules and organisation of the entities in charge of ADR.
The Directive also regulates the extent of the binding effects of ADR, which cannot be binding if the agreement between the trader and consumer has been concluded before the dispute materialises. The binding effect of the dispute requires the parties to be informed beforehand, as well as their specific agreement. Each Member State is responsible for designating a competent authority to check the compliance of the entities which submit a request to be designated as an ADR body.
The Directive was accompanied by Regulation (EU) 524/2013 on online dispute resolution for consumer disputes, which established the online dispute resolution digital platform, developed and operated by the Commission. This platform is intended to be the single point of entry for consumers and traders seeking out of court resolution of disputes. However, the development of online complaint solutions by digital marketplaces has limited the use of the platform to 200 complaints per year on average.