Consumer-to-Business ADR Structures

Author: 
Christopher Hodges
Iris Benöhr
Naomi Creutzfeldt-Banda
Publication date: 
Thu, 10 May 2012

This policy brief addresses the difficulty consumers face when trying to resolve minor disputes with business, for which the courts prove too slow and costly. It comes in response to the EC proposed legislation in November 2011 for an EU-wide alternative dispute resolution mechanism.
 
By consolidating the emerging alternative dispute resolution systems, the policy brief proposes a new model to both enable consumers to effectively enforce their rights, and to help identify problems and prevent them from becoming mass issues.
 
The recommendations cover issues such as independence; the acceptability of funding from business; whether decisions should be binding or not; the need for simplicity and clarity to engender consumer and business trust; and the need for transparency of aggregated data if the regulatory and behavioural benefits of the CADR system are to be achieved.