Sometimes consumers encounter problems with products or services purchased. Fortunately, most of the time these problems are resolved amicably between consumer and trader but there could also be instances where the trader refuses to provide the remedy requested by the consumer or there is a disagreement about the kind of remedy that should be provided. Such disputes can be settled fast, effectively and cheaply without the need to go to court, through alternative dispute resolution (ADR) entities.
Since not all EU countries had ADR entities to cover all kind of disputes with traders, the EU proposed new legislation to help consumers solve their disputes with traders out of court.
The ADR Directive, which recently came into force in all EU member states, enables consumers to solve any disputes they have with traders through ADR entities without going to court, no matter what they purchased or from where.
The Complaints and Conciliation Directorate within the Office for Consumer Affairs is Malta’s residual ADR entity. This ensures that Maltese consumers have full ADR coverage and access to out-of-court settlement, regardless the nature of their purchase and from where the purchase was made.
The Alternative Dispute Resolution enables consumers to solve any disputes without going to court
The ADR Directive also establishes harmonised quality requirements for ADR entities and ADR procedures to ensure that consumers have access to high-quality, transparent, effective and fair out-of-court redress mechanisms no matter where they reside in the EU.
The Consumer Alternative Dispute Resolution Regulations stipulate that established ADR entities have to: maintain an up-to-date website with easy access to information concerning the ADR procedure and which enables consumers to submit a complaint and any supporting documents online; enable consumers to submit a complaint offline; and enable the exchange of information between the parties involved by electronic means or, if applicable, by post.
An ADR entity may refuse to deal with a dispute on one of the following grounds:
• the consumer did not inform the concerned trader about the complaint and hence did not try to resolve the matter directly with the trader;
• the dispute is frivolous or vexatious;
• the dispute is already being dealt with by another ADR entity;
• the value of the claim falls below or above a pre-specified monetary threshold;
• the consumer has not submitted the complaint to the ADR entity within a pre-specified time-limit, which is not less than one year from the date when the consumer submitted the complaint to the trader.
In situations where the ADR entity is unable to consider a dispute, the regulations stipulate that the ADR entity must provide the parties involved in the dispute with a reasoned written explanation as to why the dispute cannot be mediated through the ADR entity.
With online purchases, the Online Dispute Resolution (ODR) platform will facilitate the resolution of online disputes. This tool may also be used for domestic online purchases.
The ODR platform is a web-based platform specifically designed to help consumers who have bought goods or services online and subsequently have a problem with that online purchase. This platform allows consumers to submit their dispute and conduct the ADR procedure online and in any of the 23 languages of the EU.
The ODR platform transmits disputes only to ADR bodies included in the national lists that comply with the binding quality requirements established by the ADR Directive.
This platform will be open for use by consumers and traders from February 15.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.