Resolving consumer disputes now cheaper and faster

"In order to boost EU consumers' confidence to carry out more cross-border transactions online, it is essential to create an effective tool which will help resolve disputes in a fast, cheap and fair way; and most importantly, in the language of the parties involved. The Online Dispute Resolution (ODR) platform allows both consumers and businesses to receive better guidance as to the most appropriate scheme for resolving their online disputes, and fully benefit from all opportunities the Single Market offers", said the European Parliament's Rapporteur for the ODR, Róża Thun MEP.

The basis for the ODR Regulation is the Alternative Dispute Resolution (ADR) Directive which allows European consumers to ask independent mediators for help in case of disputes over purchased goods, both online and offline.

"The Alternative Dispute Resolution offers a fast, affordable and effective way to solve problems. It allows consumers to find a solution with suppliers without embarking on lengthy legal battles in the courts. The cornerstone of the system will be full geographic coverage of ADR entities and this will boost confidence in the Single Market as the consumer will have the guarantee to find an ADR entity nearby", said the EPP Group Shadow Rapporteur on the ADR, Hans-Peter Mayer MEP.

The European Parliament's Internal Market and Consumer Protection Committee today approved two new instruments for settling disputes between shoppers and traders - the Alternative Dispute Resolution (ADR) Directive and the Online Dispute Resolution (ODR) Regulation. The aim is to solve disputes concerning cross-border and domestic transactions and e-commerce purchases without going to court.

The Alternative Dispute Resolution is an out-of court instrument where the entities help resolve disputes in the case of problems in sales and services contracts between trader and consumer. The Regulation on the Online Dispute Resolution on the other hand will establish an online platform available in all official languages of the EU, which will allow consumers and traders, who are located far from each other, to handle their disputes. The ADR and the ODR offer cheap and quick solutions, as opposed to court proceedings, which are often expensive, time-consuming and burdensome.

The final plenary vote of the European Parliament on the ADR and the ODR will most probably take place in March 2013.