The UK Consumer Alternative Dispute Resolution Regulations fully came into force on 1 October 2015. It is important to understand the implications for your business.
The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 (SI 2015/542) fully came into force on 1 October 2015. You should speak to your commercial solicitor to gain a greater understanding of the Regulation.
The Regulation defines “consumer” as an individual acting for purposes which are wholly or mainly outside that individual’s trade, business, craft or profession. The Regulation defines “trader” as a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf.
The purpose of the Regulation is to promote ADR as a means of redress for consumers in relation to unsatisfactory goods or services, particularly for online sales in the EU.
The Regulation imposes obligations on traders to provide information about ADR entities and, from 9 January 2016, about the online dispute resolution platform being established by the European Commission.
Under regulation 19(1), a trader who is obliged by law or its trade association rules or the terms of a contract to use ADR services, must make the name and address of the relevant ADR entity available on its website and in its general terms and conditions.
In addition, under regulation 19(2), any trader who receives a complaint from a consumer about a contract, and is unable to resolve the complaint with them using its own internal complaints procedure, must inform the consumer on a durable medium: (i) that it cannot settle the complaint; (ii) the name and website address of the relevant ADR provider; and (iii) whether it is obliged or prepared to make use of the ADR provider.
Therefore, providing ADR information is now mandatory, although using ADR is voluntary, if a trader is not obliged to do so. Consultant your business solicitor to gain a greater understanding of the Regulation.
It should be noted that these Regulations do not apply to a contract to the extent that it is for health services provided by health professionals to patients to assess, maintain or restore their state of health, including the prescription, dispensation and provision of medicinal products and medical devices.
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