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BackOn Tuesday, EU Commissioner Antonio Tajani, presented two legislative proposals on the alternative dispute resolution of consumer disputes. Based on these proposals, disputes between consumers and businesses will be increasingly settled out-of-court. This is to result in a faster, cheaper and more effective resolution of a dispute for both parties, said the Commissioner. However, representatives of consumer protection organisations see no reason to be overjoyed: the proposals do not contain anything indicating that the instrument is obligatory. It is also not clear who would take the decisions within the scope of alternative dispute resolution.
Commission focuses on advantages of out-of-court dispute resolution
Consumers often have problems to get a refund when goods or services are not satisfactory. These problems are even worse when customers purchase something in another EU country or online. In the current situation, consumers tend not go to court because of smaller disputed amounts. Out-of-court solutions, also called Alternative Dispute Resolution (ADR), were to provide a remedy. They would be faster, cheaper and easier for both customers and businesses. Settling a dispute concerning transactions regulated in the Directive is to take a maximum of 90 days. Apart from that, a new online portal for filing complaints in the eCommerce sector is to ensure a fast settlement of disputes within 30 days.
Both proposals are to ensure that the option of settling a dispute by means of Alternative Dispute Resolution is available anywhere in the EU, whatever the product or the service. Apart from that, the proposals aim at ensuring impartiality, fairness, transparency and effectiveness of out-of-court dispute resolution authorities. In addition, invoices should provide information on the competent authority for dispute resolution. In future, when customers purchase a product in another EU country and if they are not satisfied with this product, they are able to settle a dispute with an online trader via a digital platform.
These EU-wide measures are to guarantee equal consumer protection via out-of-court dispute resolution mechanisms in all Member States. Based on the new option of online dispute resolution it is aimed at further developing the single market for cross-border digital transactions. The Directive for ADR mechanisms is to come into effect in 2014 and the one for online disputes in 2015. It is too early to say to what extent these mechanisms will in fact benefit consumers. Apart from that, the option for consumers to get redress by class action lawsuits has not been included in the proposals.
Consumer protection organisations share grave concerns
Consumer representatives do not share the joy of the Commission regarding the proposed legislative measures without reservations: one of the main criticisms is that Alternative Dispute Resolution is not compulsory. It also had to be clarified who was to take the decisions in dispute resolution procedures. The transparency concerning these two proposals has also not yet been satisfactorily solved. Apart from that, consumer protection organisations express regret that the Commission has not presented a proposal for class action in the EU.
Links:
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on online dispute resolution for consumer disputes (Regulation on consumer ODR)
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on alternative dispute resolution for consumer disputes and amending Regulation (EC) No. 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR)
Consumers often have problems to get a refund when goods or services are not satisfactory. These problems are even worse when customers purchase something in another EU country or online. In the current situation, consumers tend not go to court because of smaller disputed amounts. Out-of-court solutions, also called Alternative Dispute Resolution (ADR), were to provide a remedy. They would be faster, cheaper and easier for both customers and businesses. Settling a dispute concerning transactions regulated in the Directive is to take a maximum of 90 days. Apart from that, a new online portal for filing complaints in the eCommerce sector is to ensure a fast settlement of disputes within 30 days.
Both proposals are to ensure that the option of settling a dispute by means of Alternative Dispute Resolution is available anywhere in the EU, whatever the product or the service. Apart from that, the proposals aim at ensuring impartiality, fairness, transparency and effectiveness of out-of-court dispute resolution authorities. In addition, invoices should provide information on the competent authority for dispute resolution. In future, when customers purchase a product in another EU country and if they are not satisfied with this product, they are able to settle a dispute with an online trader via a digital platform.
These EU-wide measures are to guarantee equal consumer protection via out-of-court dispute resolution mechanisms in all Member States. Based on the new option of online dispute resolution it is aimed at further developing the single market for cross-border digital transactions. The Directive for ADR mechanisms is to come into effect in 2014 and the one for online disputes in 2015. It is too early to say to what extent these mechanisms will in fact benefit consumers. Apart from that, the option for consumers to get redress by class action lawsuits has not been included in the proposals.
Consumer protection organisations share grave concerns
Consumer representatives do not share the joy of the Commission regarding the proposed legislative measures without reservations: one of the main criticisms is that Alternative Dispute Resolution is not compulsory. It also had to be clarified who was to take the decisions in dispute resolution procedures. The transparency concerning these two proposals has also not yet been satisfactorily solved. Apart from that, consumer protection organisations express regret that the Commission has not presented a proposal for class action in the EU.
Links:
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on online dispute resolution for consumer disputes (Regulation on consumer ODR)
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on alternative dispute resolution for consumer disputes and amending Regulation (EC) No. 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR)