Study published on the use of Alternative Dispute Resolution (ADR) in the European Union
The Study, commissioned by the European Commission and conducted by CIVIS Consulting Berlin, provides an overview of the existing ADR schemes in the EU and how they work. It identifies the existing gaps and assesses the conformity of ADR schemes with two relevant Commission recommendations [1].
According to the Study, progress has been made in terms of the availability of ADR schemes since the Commission database was first compiled[2]. However, only 60% of the 750 ADR schemes relevant for business-to-consumer disputes are notified to and thus acknowledged by the European Commission.
The number of ADR cases in the EU has increased from 410 000 cases in 2006 to in 2008 approximately 530 000 in 2008.
The Study confirms what RIAD members have always stressed, namely, that ADR is a quick and efficient way to settle disputes to the best satisfaction of consumers and, in particular, that the vast majority of ADR schemes are free of charge for the consumer or of moderate cost, i.e. below 50€. Moreover, a majority of ADR cases are decided within a period of 90 days; i.e. the European Court of Human Rights[3] generally regards the total duration of up to two years in non-complex cases as reasonable.
However, the following barriers remain according to the Study:
- Gaps in the coverage of ADR procedure both at the geographical and the sectoral levels;
- On the consumer side a general lack of awareness, frequent non compliance by business with non-binding decisions of ADR schemes or refusal by business to enter the procedure, as well as finding the relevant applicable scheme and language barriers;
- On the business side the lack of available schemes in some sectors.
According to the Study, ADR schemes comply in general with most of the requirements laid down in the two Commission recommendations, but it identifies some problems:
- A lack of transparency of ADR procedures, as a considerable number of ADR schemes do not have a website of their own;
- In many cases consumers do not have easy access to information about the use, number, types of cases and past performance of ADR schemes.
Many schemes apply best practices that, according to the Study, should be shared for the benefit of the other schemes and should be added to the list of principles defined by the Commission Recommendations. It is therefore suggested that an appropriate body develops EU-wide guidelines or more formal industry standards. RIAD will continue to follow the issue.
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[1] Commission Recommendation of 30 March 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes (98/257/EC EN, FR, DE) and Commission Recommendation of 4 April 2001 on the principles for out-of-court bodies involved in the consensual resolution of consumer disputes (2001/310/EC EN, FR, DE).
[2] The database was compiled following the Commission Recommendation 2001/310/EC
[3] Study published by European Commission for the Efficiency of Justice (CEPEJ), Length of court proceedings in the member states of the Council of Europe based on the case law of the European Court of Human Rights, December 2006. Available at: http://www.coe.int/t/dghl/cooperation/cepej/delais/Calvez_en.pdf