BEUC NEWS - 16.02.2016

The European Commission has just launched a platform to help solve online disputes between traders and consumers. The webtool will allow consumers to lodge complaints against traders and involve dispute resolution (ADR) bodies to suggest an out-of-court settlement. BEUC welcomes the setting up of this platform but underlines that this is only the beginning of the journey. It is not an end in itself.

The Online Dispute Resolution (ODR) platform could help to solve a great number of online disputes. It is both cheaper and potentially faster than going to court.

The website gives consumers and traders the possibility to upload their complaints. These are then directed to the body or person against whom the complaint is made. Once the other party is aware of the situation and has chosen the dispute resolution body (called ADR), the platform automatically transfers the complaint to that entity. The ADR entity then handles the case entirely online and must reach an outcome in 90 days.

So far so good. However, for the scheme to be successful, three ingredients are crucial. First, the ADR bodies must be independent which means that they must not be biased in favour of businesses. Second,  businesses must take part in the scheme either through incentives. Currently their involvement is only voluntary. Finally, the platform has to be as user-friendly as possible so consumers are not put off by the complexity of the process.

There is another hitch at the moment. Consumers from 11 countries can still not take part in the ODR platform. This is because those countries have not (yet) applied the EU’s ADR Directive in their national law, something which is crucial for the overall success of dispute resolution. The Commission must make sure EU member states implement these new EU rules so that all of the EU’s 500 million consumers can take advantage of this new tool.