Labour MEP Louis Grech has set out the case for making Alternative Dispute Resolution (ADR) accessible to all European consumers during a speech at a European Parliament’s public hearing on the subject.

Mr Grech said that good quality ADR systems offer a “simple, fast and affordable” alternative to conventional methods of resolving disputes between consumers and businesses that could otherwise become lengthy, expensive court cases. According to the Labour MEP, having a comprehensive ADR system for all European citizens will offer “tangible benefits for both consumers and businesses” by reducing costs and bureaucracy.

“When they are aware of it, consumers and traders find that good quality ADR works for them,” Mr Grech said.

“However, many existing systems are of low quality, are not widely available, or consumers are simply unaware of their potential advantages,” he noted.

According to a 2010 Eurobarometer survey, a mere five per cent of consumers who had experienced problems in the previous 12 months took their complaint to an ADR entity.

“Without the appropriate safeguards, we have seen that citizens will not fully participate in the Single Market, by shopping online with companies based in other member states, to take one example.”

Mr Grech also highlighted the boost that ADR could give the online economy, the growth of which is currently hampered by a perception amongst consumers and traders that online shopping across borders can be risky. “It’s clear that online commerce is increasingly a central pillar of economic activity within the EU. We should therefore put the right framework of measures in place so that we maximise its potential for growth.”

The public hearing on ADR was organised by the Internal Market and Consumer Protection Committee of the European Parliament in Brussels. The event attracted members of the public, consumer organisations, business organisations and government and European Commission officials.