BRUSSELS (ChatnewsTV) — The Council of the European Union adopted a new negotiating mandate on Wednesday aimed at modernizing and expanding the bloc’s alternative dispute resolution (ADR) mechanisms for consumers. The measures are designed to address the challenges posed by the digital world, making it easier and faster for consumers and businesses to resolve disputes without going to court.
The Council’s position, which focuses on updating the ADR directive and the regulation on the discontinuation of the online dispute resolution (ODR) platform, seeks to expand the range of issues eligible for ADR, making the process more attractive for both parties involved.
“Many consumers facing a disagreement with a company are reluctant to pursue legal action due to small sums involved, long procedures, or a lack of confidence in the outcome,” the Council said in a press release. “This updated framework will help resolve such disputes more effectively.”
One of the major changes includes the requirement for businesses to respond to ADR requests within 40 working days in cases of complex disputes or under exceptional circumstances. The Council highlighted that the goal is to minimize administrative and financial burdens while maintaining a high level of consumer protection.
The revised directive also accounts for advancements in technology by including provisions that require companies to inform consumers when automated systems, such as artificial intelligence, are used in ADR decision-making processes.
“By making the ADR framework fit for the digital age, we’re ensuring that consumers can resolve disputes in a fair, transparent, and timely manner,” the Council’s statement added.
The new measures also aim to cover modern unfair practices, such as manipulative advertising and geo-blocking mechanisms, which the current ADR framework does not fully address.
In response to the Council’s decision, consumer rights advocates hailed the reforms as a significant step forward in improving access to justice for European consumers.
The Council’s mandate now paves the way for negotiations with the European Parliament to finalize the updated legislative framework. If adopted, the new rules would provide a stronger foundation for settling disputes related to EU consumer protection laws and ensure better protection for consumers across the digital landscape.
The Commission projects that the number of disputes resolved through ADR could increase from 300,000 to 500,000 annually with these reforms.
The next steps will involve the development of a new digital interactive tool to replace the existing ODR platform, which is expected to launch within three months after the revised directive takes effect.
