The government has produced a bill to encourage ADR in consumer contract cases.
The new system echos the existing ADR Regulations with businesses being obliged to explain what ADR they use and it is to be free to consumers.
oniy ADR providers who are accredited (like ProMediate) will be able to offer ADR services in consumer contract disputes.
The Bill will help consumers to be able to resolve disputes directly with businesses by the introduction of ADR provisions. These include a duty on businesses to notify consumers about any ADR arrangements applicable to the business where a consumer is dissatisfied with the outcome of any complaint, and imposes obligations on ADR providers (including a prohibition on acting as an ADR provider without accreditation, unless exempt, and a prohibition on charging fees to consumers). The EU is doing something similar with the ADR Directive.
The Bill provides as follows:
ACCREDITATION CRITERIA
PART 1
THE CRITERIA APPLICABLE TO AN ACCREDITED ADR PROVIDER
Criterion 1: information for consumers
359
Section 292
1 (1)
(2)
The ADR provider provides consumers generally with accessible information about the ADR that it carries out or for which it makes special ADR arrangements.
The information provided should include (among other things) information about—
(a) the kinds of ADR it carries out or for which it makes special ADR arrangements (including the possible outcomes of each kind);
(b) the types of dispute it deals with (whether by carrying out ADR or making special ADR arrangements);
(c) the procedures adopted in relation to ADR carried out by it or for which it makes special ADR arrangements;
(d) any fees or costs payable by either party to a dispute that is referred for ADR.
Criterion 2: readiness to carry out ADR
2 The ADR provider does not unreasonably refuse to carry out ADR or, as the case may be, to make special ADR arrangements, in relation to disputes referred to it.
Criterion 3: expertise
3 The ADR provider has sufficient expertise for carrying out ADR or, as the
case may be, for making special ADR arrangements, in relation to the types of dispute it deals with.
Criterion 4: facilities for consumers and traders to participate
4 (1) (2)
The ADR provider provides accessible means for consumers to refer disputes to it.
The ADR provider or, as the case may be, any other ADR provider with whom it makes special ADR arrangements, ensures there are accessible
means for the parties to participate in the ADR carried out in relation to
their dispute.
Digital Markets, Competition and Consumers Bill Schedule 23—Accreditation criteria Part 2—Supplementary
Criterion 5: fair ADR procedures
5 (1)
(2) (3)
The ADR provider or, as the case may be, any other ADR provider with whom it makes special ADR arrangements, adopts and follows fair procedures in carrying out ADR.
The procedures adopted should, in particular, be easy to use, transparent, non-discriminatory and effective.
They should include procedures for securing that each party to a dispute referred for ADR—
(a) has a reasonable opportunity—
(i) to express its point of view in relation to the matters in 10 dispute and the outcome it seeks;
(ii) to consider the views, arguments and evidence put forward by the other party;
(b) is entitled to be represented or assisted by another person (and that
it is immaterial whether or not that person is legally qualified).
Criterion 6: independence and impartiality
6 (1)
(2)
The ADR provider or, as the case may be, any other ADR provider with whom it makes special ADR arrangements, acts independently and impartially before, and while, it carries out ADR.
The action to be taken should include—
(a) following appropriate procedures for identifying, and avoiding, any conflict of interest before carrying out ADR in relation to a dispute;
(b) taking steps to avoid conflicts of interest that may arise before, or
Criterion 7: information for parties
25
7 (1)
(2)
The ADR provider or, as the case may be, any other ADR provider with whom it makes special ADR arrangements keeps the parties to a dispute informed about the conduct and progress of any ADR being carried out.
8 9
The action to be taken includes notifying the parties promptly in writing
of the outcome of the ADR and, where applicable, of the grounds on which any decision has been reached.
PART 2
SUPPLEMENTARY
The following provisions have effect for the interpretation or application
of this Schedule.
The accreditation criteria only apply to the ADR provider so far as it is reasonable to regard them as applicable—
while, it carries out ADR in relation to a dispute.
Digital Markets, Competition and Consumers Bill 361 Schedule 24—Chapter 4 of Part 4: consequential amendments etc
(a) in relation to ADR of a kind that is carried out by the ADR provider or, as the case may be, by any other ADR provider with whom the ADR provider makes special ADR arrangements, or
(b) in relation to activities of the ADR provider in, or in connection
with, making special ADR arrangements.
10 “Procedures”, in relation to ADR, means any rules, requirements or practices relating to the carrying out of ADR, including—
(a) any time limits for referring disputes for ADR;
(b) any conditions or other requirements to be met by either (or both)
of the parties before, or while, ADR is being carried out; 10
11 “Dispute” means a consumer contract dispute.