Alternative Dispute Resolution Mechanisms

Alternative Dispute Resolution Mechanisms (ADR) are an out-of-court mechanism that allows consumers to resolve disputes with the trader thanks to the intervention of an impartial third party (the ADR body). Compared to court procedures, it is an easy, fair and cost-effective mechanism to enforce consumer rights, especially when it involves low-value disputes.

Although the EU tried to harmonise the ADR framework by setting common minimum standards, the functioning of this mechanism is quite heterogenous in Europe. Among others, there are difference regarding the obligation for traders to engage in such procedures (not always mandatory) and the nature of the outcome (not always binding). 

Currently, there are more than 400 notified bodies, which can be used to deal with consumer complaints in areas such as transport (especially air travel), clothing, holiday accommodation, ICT goods and services, and financial services.

How to act