The DMCC Act and the New ADR Landscape: A Turning Point for Consumer Dispute Resolution
The UK government’s sweeping new Digital Markets, Competition and Consumers Act (DMCC Act) marks a significant moment for consumer protection and market regulation. Passed in 2024, the Act is best known for tackling the dominance of big tech and unfair market practices. But tucked within its extensive provisions is a crucial – and arguably overdue – shake-up of the alternative dispute resolution (ADR) landscape.
ADR, particularly in the consumer context, has often operated in a patchy, fragmented system. While some sectors have robust ombudsman schemes, others have relied on voluntary ADR providers of varying quality. The DMCC Act aims to change that by introducing greater consistency, transparency and accountability across the ADR sector – ultimately strengthening consumer trust and market fairness.
Key Changes to ADR under the DMCC Act
- Compulsory Accreditation and Standards
For the first time, ADR providers must be accredited by the newly strengthened Office for Product Safety and Standards (OPSS) in order to operate in the consumer space. Accreditation will depend on meeting minimum standards relating to independence, impartiality, expertise, transparency, and timeliness. This is a clear move to prevent rogue or unqualified ADR schemes from undermining the system or exploiting consumers. - Enhanced Oversight and Enforcement
The OPSS will no longer simply maintain a list of compliant ADR providers – it will actively monitor, audit, and enforce compliance with the new standards. This oversight will include the ability to revoke accreditation, issue directions for improvement, and – critically – impose financial penalties for serious breaches. - Improved Access to ADR
The DMCC Act strengthens consumer access rights by ensuring that ADR is offered in more disputes – and that consumers are made aware of their right to use it. Businesses will face stricter obligations to signpost consumers to accredited ADR providers at the point of complaint and during unresolved disputes. In essence, businesses will no longer be able to bury ADR rights in the small print or ignore them altogether. - Better Outcomes and Data Transparency
ADR bodies will be required to publish clear outcome data, including resolution rates, average time to resolve disputes, and levels of consumer satisfaction. This is intended to drive up standards, aid consumer choice, and increase pressure on underperforming providers to improve – or face exclusion from the scheme.
What This Means for Consumers and Businesses
For consumers, the reforms offer a much-needed improvement in trust and clarity. No more confusion over which schemes are genuine, impartial or effective. Accredited ADR will become a reliable and recognisable route to justice – without the cost and stress of going to court.
For businesses, the changes represent both a challenge and an opportunity. There will be a legal obligation to engage with ADR more seriously and proactively – but also a real chance to resolve complaints faster, protect reputation, and avoid costly litigation.
A Step Towards a Fairer Market
The DMCC Act signals a fundamental recognition that ADR is not an afterthought – it is a cornerstone of a fair, modern consumer economy. By bringing ADR under consistent regulation, the government is sending a clear message: consumers deserve redress that is quick, affordable, and trustworthy.
These reforms also open the door to broader changes in how disputes are handled in the UK, with the potential for similar principles to be extended to other sectors. For consumer advocates, lawyers, and ADR professionals, the message is clear – the era of voluntary, uneven dispute resolution is coming to an end. A new, regulated ADR regime is here.