ADR regulatory process update

On 17 October 2023, the Commission adopted a proposal for a directive amending Directive 2013/11/EU on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828.

The proposal entails several key changes:

• It extends consumer rights to non-contractual and pre-contractual situations, including digital content and services, and allows for additional dispute resolution categories. It removes geographical establishment requirements for traders, defining cross-border disputes between consumers and traders in different EU states.
• The changes allow bundling similar cases into one procedure with consumer consent, impose a 20-day response deadline for traders to ADR requests, and permit Member States to mandate trader participation in ADR.
• It ensures complaint traceability and support for vulnerable consumers, including non-digital procedures upon request. Parties have the right to human review of automated ADR processes.
• Improved information access and assistance for cross-border disputes are mandated, with ADR contact points designated by Member States.

To enhance trader participation, amendments proposed by the IMCO Committee make participation mandatory for certain air carriers and extend the scope to include pre-contractual obligations.

To boost consumer awareness, amendments aim to improve the impartiality and quality of ADR procedures, requiring human review of automated processes and general understanding of private law in cross-border cases by ADR personnel.

On 13 March, the Plenary endorsed the report as Parliament first reading position with 605 votes in favour, 7 votes against and 13 abstentions. In the Council, it has been referred to the Working Party on Consumer Protection and Information, which debated it for the last time on 22 April.

It is uncertain whether the ADR will be adopted before the European Parliament elections in June. Any institutional change in the midst of this process could influence the regulatory process and final result of the file.