About consumer ADR
Alternative Dispute Resolution (ADR) is a way to settle complaints with your customers without going to court. It’s handled by independent bodies—like mediators or ombudsmen—that look at both sides and suggest a fair solution. All ADR entities are independent and must meet the strict quality requirements of the Directive 2013/11/EU (the ADR Directive). The process is fast, affordable, and less formal than legal action, but the outcome can still be binding depending on the rules in your country.
The ADR Directive has been amended by the Directive - EU - 2025/2647 - EN - EUR-Lex, which modernises and simplifies the dispute resolution processes.
If your customer is in a different EU/EEA country and they want to use ADR, most of the time they will need to contact the ADR entity in your country. Find an ADR entity available here or contact your national competent authority for more information on the applicable rules. ADR isn’t just about avoiding court—it’s a chance to resolve issues quickly, keep customers happy, and protect your business. A fair resolution can prevent bad reviews, regulatory fines, or costly lawsuits. Plus, showing you’re willing to work with ADR can build trust and even attract more customers. Most cases are resolved in 90 days or less, and many ADR entities will resolve them in a written procedure, so you spend less time on disputes and more on running your business.
The ADR Directive applies to complaints submitted by a consumer against the trader (and not vice versa). It currently applies to the disputes over purchases (of products and services). In the future, ADR can be used in the disputes over supply of digital contracts or digital services where the consumer agreed that the trader uses their personal data in lieu of payment. National or sectoral rules can further extend the scope of application (for example, covering disputes over access to services).
Your obligations as a trader
It is up to the Member States to decide whether traders’ participation in ADR is mandatory or voluntary – in some sensitive sectors, EU may decide to make ADR mandatory.
In some countries, even if the participation is voluntary, the ADR entity may issue a recommendation when a trader chooses not to participate. Even if you are not obliged to use ADR, doing so may restore the trust between your customer and your company, and prevent escalation to courts or to other redress options that the consumer may find on the Redress Portal’s Solution Finder. This may mean a more costly or more cumbersome process.
If, depending on your national legislation or contracts, you are obliged or committed to use ADR, you must make it clear to the consumers on your website, as well as in your terms and conditions. National legislation may set out additional obligations.
The ADR Directive has been amended in 2025. Member States will need to adapt their national laws by 20 March 2028, including the following:
- you’ll have 20 working days (extendable to 30) to respond to an ADR body’s invitation to resolve a dispute (the Duty to Reply). Failure to do so may result in consequences defined by the national legislations.
- The duty to reply does not apply when ADR is mandatory, when the trader undertook a commitment to use ADR, and when an ADR entity in question may issue a recommendation without the trader participating (you will still be contacted and have an opportunity to state your case).
- While most ADR entities ask consumers to try to settle the dispute with you directly before submitting a complaint, they can’t impose disproportionate pre-complaint steps (like mandatory calls to specific teams);
- As previously, you must ensure ADR information is clearly displayed on your website and in your terms and conditions.
The ADR Directive applies to the traders who are based in the EU or EEA countries. In the future, traders who are based outside the EU but sell to EU consumers, may opt into ADR schemes, under conditions established by the country where the ADR body is located.
European Consumer Centres
The European Consumer Centres, working together as the European Consumer Centre Network (ECC-Net) are not ADR bodies but rather an advisory service that offers free, personalised help for consumers who have a problem with a purchase from another EU country, Iceland or Norway. A consumer contacts an ECC in their own country who will prepare the file for another ECC in the trader's country. As a result, you may be approached by a highly qualified ECC expert and asked to find a satisfactory solution.
ECC-Net intervention is completely free for both parties, and it may be the easiest way for you to find a solution. ECC-Net also has a role in alerting enforcement authorities about systematic breaches of consumer law - which is one more reason to engage with them constructively.
In the future, ECCs may also take up a new role as ADR contact points to help consumers and traders to access to the ADR entity or entities competent to deal with their cross-border dispute.
Still have questions?
Contact your national competent authority