Proposal for a 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 (Direc

"This present proposal, together with the proposal for a Regulation on Online Dispute Resolution for consumer disputes (Regulation on consumer ODR), has to be seen in the context of efforts to improve the functioning of the retail internal market and more particularly to enhance redress for consumers.

A substantial proportion of European consumers encounter problems when buying goods and services in the internal market. In 2010, this was the case for approximately 20% of European consumers1. Despite a generally high level of consumer protection guaranteed by legislation, problems encountered by consumers are often left unresolved. The losses incurred by European consumers because of problems with purchased goods or services are estimated at 0.4% of the EU GDP.

In addition to having recourse to traditional judicial means of redress2, consumers and businesses in some Member States have the option to refer their complaints to alternative dispute resolution entities ("ADR entities"). These entities aim at resolving, out-of-court, disputes arising between parties, through the intervention of an entity (e.g. arbitrator, conciliator, mediator, ombudsman, complaints board).

The Commission has adopted two Recommendations on consumer ADR3 and established two networks dealing with ADR (ECC-NET4 and FIN-NET5). A number of EU sector-specific legislation contains a clause on ADR6 and the Mediation Directive7 promotes the amicable settlement of disputes, including consumer disputes. However, the analysis of the current situation identified the following main shortcomings which hinder the effectiveness of ADR: gaps in the coverage, the lack of consumer and business awareness as well as the uneven quality of ADR procedures8."

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Web-link: http://www.europa.eu
Source: European Commission
Language: English