Whilst previously traders and their customers had to go to court to settle any disputes, it is now possible to do it all online thanks to a new Online Dispute Resolution (“ODR”) platform. Set up as a result of EU regulations and as part of the Commission’s Digital Single Market initiative, the ODR platform will link to national Alternative Dispute Resolution (“ADR”) providers such as the Retail Ombudsman, the Property Ombudsman and the Federation of Master Builders in the UK including around 117 Alternative Dispute Resolution bodies from 17 Member States. There is also a translation function to help with any cross border disputes. Consumers will be able to submit complaints directly to the relevant trade body via the platform which it is hoped will be quicker and less expensive.
By law, all online traders selling goods, services and digital content to consumers must now provide a link to the ODR platform from their website, in all emails and in their Terms & Conditions. The idea being to encourage consumers to do more business online and acrosss borders in the knowledge that in the event of a dispute, it can be quickly resolved and at low cost.
What steps should you take now?
- Provide a link to the ODR Platform on your website. The link should be easily accessible for consumers. If you have information on an existing complaints procedure within your website, the link could be placed there.
- Remember, you must state your email address on your website (an online contact form that does not show the email address is not sufficient to meet this requirement).
- Where you are required to use an approved ADR provider (whether by law, by scheme membership or by contract) you must give additional information to consumers. By way of example, telco’s would fall into this category because Ofcom and the General Conditions require that public electronic communications providers are members of one of the two Ofcom-approved ADR schemes.
- Not only must you link to the ODR Platform on your website, you must also:
- inform consumers of the existence of the ODR Platform and the possibility of using the platform to resolve disputes;
- include this information in any standard terms and conditions of business; and
- include a link to the ODR Platform in any emails sent to the consumer offering goods or services.
- Where your internal complaint handling process has been exhausted, you must inform the consumer via a durable medium: (1) that you cannot settle the complaint; (2) the details of a competent ADR entity; and (3) whether you submit to such ADR.
For more information see: