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Action 14: Explore the possibilities for Alternative Dispute Resolution

Explore initiatives on consumer Alternative Dispute Resolution in the EU with a view to adopting a legislative proposal by the end of 2011 and proposing an EU-wide Online Dispute Resolution system for cross-border eCommerce transactions by 2012.

What is the problem? Difficult to resolve online cross-border shopping disputes

In 2009, only 8% of EU consumers bought goods and services online from a provider from another Member State. This could be down to a lack of trust in online cross-border shopping. About 70% of consumers also think it would be harder to resolve problems when shopping from another Member State. Consumers need reassurance that if things go wrong they can obtain redress, despite the involvement of different jurisdictions.

Alternative Dispute Resolution (both off- and on-line) is an out-of-court mechanism, usually involving a third party, which helps solve problems when the two parties to a dispute cannot agree. ADR can offer cheap, simple and quick redress for consumers and is also a vital tool for maintaining business reputation.

Why is EU action needed? To bolster current ADR schemes

Today, more than 750 ADR schemes exist in EU Member States, but ADR has not yet reached its full potential. Why? Firstly, there are both sectoral and geographical gaps in ADR coverage. Secondly, consumers and businesses often do not know about those schemes. Thirdly, not all businesses are ready to engage in the ADR process.

What has the Commission achieved?

In November 2011, The Commission issued a package setting a framework for Alternative Dispute Resolution processes at the EU level and creating an EU-wide online dispute resolution system for the e-commerce transactions.

See also actions 1, 4 and 9

Contact:

ken.ducatel@ec.europa.eu