European Commission Wants to Modernise & Simplify Alternative Dispute Resolution
The European Commission is proposing new measures to streamline alternative dispute resolution (ADR) in the digital market. The Commission’s proposal contains a series of modernisations aiming to simplify out-of-court procedures and to enhance consumer protection in the EU. The proposed changes intend to adapt the existing rules to the evolving digital market while expanding the scope of the Alternative Dispute Resolution Directive.
Objective of the new measures
The primary objective of the proposed new measures is to provide consumers with efficient, accessible, and fair mechanisms for resolving disputes, particularly in cases of misleading advertising, manipulative interfaces, access to services, and unjustified geoblocking. This initiative also comes in response to the findings of the impact assessment carried out by the Commission and the 2023 Consumer Scoreboard. Moreover, it is part of the EU’s broader strategy to ensure that consumers can effectively assert their rights in an increasingly digital and cross-border environment.
Key points of the proposal
- Expanding the scope of the Directive: The new ADR Directive seeks to encompass all aspects of EU consumer law, ensuring that non-EU traders are also subject to these rules. This expansion will address unfair practices such as manipulative interfaces, misleading advertising, and geo-blocking, which were not previously covered.
- Incentivising business participation: While businesses will retain the freedom to decide whether to participate in out-of-court dispute resolution, the proposal introduces an obligation to respond within 20 working days if a consumer requests ADR intervention. This approach aims to expedite the process and encourage businesses to engage in resolving disputes through ADR.
- Improving consumer assistance: Bodies such as the European Consumer Centres Network will provide customised support to consumers, particularly vulnerable individuals, to initiate their cases. This support will include services as help with translations,, explanations of the procedure, information about fees, and assistance with physical documentation. Member States will designate contact points to facilitate communication between consumers and traders, simplifying the process.
Next steps
The Commission's proposal must now be adopted by the European Parliament and the Council.
Want to know more?
Find more background information on the website of the European Commission.