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Alternative dispute resolution

Briefing 29-11-2024

Alternative dispute resolution (ADR) is a process allowing complaints to be settled out of court with the assistance of an impartial dispute resolution body. Through ADR, consumers can settle a complaint against a trader for breach of contract, outside court procedures, assisted by impartial, neutral dispute mediation, arbitration or conciliation. Since 2013, the share of e commerce in the EU economy has increased significantly, up from 2 % to 4 % of EU gross domestic product (GDP), increasing the relevance of ADR for consumers. Each year, approximately 300 000 eligible disputes between consumers and traders are examined by ADR entities, with resolution rates between 17 % and 100 % across the Member States. On 17 October 2023, the European Commission adopted a proposal for a directive amending several directives pertaining to consumer rights and ADR. The proposal pursues three objectives, to: adapt the ADR legislative framework to digital markets; facilitate the use of ADR in cross-border disputes; and simplify ADR procedures. In the European Ϸվ, the file was referred to the Committee on Internal Market and Consumer Protection. The committee adopted its report unanimously on 22 February 2024. On 13 March 2024, Ϸվ adopted the report as its first reading position with 605 votes in favour, 7 votes against and 13 abstentions. On 25 September 2024, Coreper approved the Council's mandate for interinstitutional negotiations. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.