The Government has introduced the Consumer Disputes (Competent Authorities and Information) Regulations 2015 and the Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015. Between them, they implement the European Union’s Alternative Dispute Resolution Directive. The Directive aims to enable consumers to achieve an easier out-of-court settlement without having to go to court. However, the Regulations are quite weak in that they do not require businesses that sell goods, services or digital content to participate in an ADR scheme.
From 1 October, however, all businesses that supply consumers must give consumers information about an appropriate ADR provider in their sector and at least inform the consumer whether they intend to use ADR. The information can be given at the stage when the business has used its internal dispute resolution process without having resolved the dispute. If the consumer then chooses to contact the ADR provider, the business has the right to choose whether or not to participate in the process.
