The European Commission proposed on 17 October 2023 to modernize and simplify the rules on out-of-court dispute resolution to adapt them to digital markets.

This proposal will expand the range of issues that can be resolved under the Alternative Dispute Resolution Directive (ADR, Directive 2013/11/EU) out of court, including issues related to misleading advertising, access to services and unreasonable geo-blocking.

To make this dispute resolution option more accessible to consumers, authorized bodies such as the Network of European Consumer Centers will help consumers understand and access alternative dispute resolution procedures. Another goal of the proposal is to speed up procedures.

On October 17, the Commission also adopted a recommendation to bring dispute resolution systems in online markets to European standards of fair and effective alternative dispute resolution.

For example, a fair and efficient alternative dispute resolution (ADR) organization should be transparent about the various stages of the procedure or ensure that mediators are independent and free of financial conflicts of interest.

The recommendation also sets out best practices for cross-border dispute resolution to be applied by trade associations in the EU.

What improvements will the new rules bring?

• Extending the scope of the directive: The directive will cover all aspects of EU consumer law and will extend its scope to traders outside the EU, covering unfair practices such as manipulative interfaces and advertising, or blocking consumer access to products and services based on geographic location criteria (geo-blocking). Under the revised directive, ADR will be able to address practices that are currently outside its scope.

• Stimulating the participation of enterprises in an extrajudicial manner: under this proposal, unless specific EU or national legislation requires traders to participate in ADR, businesses will continue to be free to decide whether or not to participate in ADR. However, if the consumer requests the intervention of an alternative institution to solve the problem, the company will have to respond within 20 working days. This will speed up the overall process and encourage traders to participate in the process and furthermore reduce the information obligations of traders.

• Improved customer support: Consumers, especially vulnerable segments of the population, will receive personal assistance in solving their case, from translation to explanations of the procedure, fees or physical documentation. To this end, Member States will designate contact points to facilitate communication between consumers and traders, who will assist consumers in the process and provide general information on EU consumer rights and available remedies

The Commission’s proposal must be adopted by the European Parliament and the Council.

Context

According to the Consumer Scoreboard 2023, a quarter of consumers experienced a problem that gave them the right to file a complaint, but a third did not take action due to long processing times, small amounts or a lack of confidence that the problem would be resolved satisfactorily. problem.

This has resulted in only 300,000 eligible disputes being filed in the EU each year. According to an impact assessment carried out by the Commission, the extension of the scope of the proposed directive could lead to the resolution of 100,000 new relevant disputes. In addition, forcing companies to respond to complaints could resolve another 100,000 disputes between traders and consumers.

The Commission’s proposal concerns minimal harmonisation, so that Member States will remain free to decide on the architecture and governance of ADR at national level, while ensuring full coverage of disputes from a consumer protection perspective.

The commission awards annual grants to ADR organizations to raise awareness of out-of-court settlement and the conduct of cases through these institutions. However, the proposal signals that parties need to be aware that if the resolution process uses automated means and environment-focused tools, consumers without digital skills are not disadvantaged.

The list of organizations for alternative dispute resolution (SAL) in Romania can be found on the websites of the relevant organizations, consumer associations, as well as the Ministry of Economy, Trade and Relations with the Business Environment, which is also the competent authority that assesses whether the SAL sub’ facilities meets the established quality requirements and informs the European Commission about the SAL list.

In the National Office for the Protection of Consumer Rights manages the Department of Alternative Dispute Resolution in ANPC, which has the authority to alternatively resolve national and international disputes arising from sales contracts or service contracts concluded with a trader operating in Romania, in the areas of activity in which ANPC is competent.

Organization of alternative dispute resolution in the non-banking financial sphere – SAL-FIN, is a structure created within the framework of the State Financial Supervision Authority in order to provide consumers with the opportunity of free recourse to the mechanism of alternative resolution of disputes in the non-banking financial sphere (insurance-reinsurance, capital market, non-state pension system). SAL-FIN is a member of FINNET. FIN-NET is a network of national organizations responsible for out-of-court handling of consumer complaints in the field of financial services. The network covers the countries of the European Economic Area

Center for Alternative Dispute Resolution in Banking, CSALB, is an independent, apolitical, non-commercial organization of public interest, established by Government Resolution No. 38/2015. The purpose of CSALB is to administer the infrastructure necessary for alternative dispute resolution (AL) between consumers and financial and banking institutions.

N. Ed: Kalu Monika is a lawyer specializing in consumer law with more than ten years of experience in this field. She specializes in protecting the rights of consumers of financial services, and her field of competence includes banking contracts, insurance contracts, regulation of the rights of consumers of financial services in national legislation and legislation of the European Union. He also holds a bachelor’s degree in economics. She is the founder and president of the United Consumers Association and a member of the Banking Stakeholder Group (BSG) of the European Banking Authority (EBA) and the Insurance and Reinsurance Stakeholder Group (IRSG) of the European Occupational Insurance and Pensions Authority (EIOPA). ), representing consumers. He is an independent member of the international public organization Finance Watch.