Fast‑Track Online Dispute Settlement for Consumers

What the document addresses
The European Commission is asking the European Parliament to accept the Council’s position on a new Directive that will replace the now‑discontinued European Online Dispute Resolution Platform. The goal is to give consumers a better way to settle disputes with traders, especially across borders, without going to court.

How the problem is being solved

• The new Directive expands the types of disputes covered – it now includes pre‑contractual issues, contracts for digital content and services, and contracts where no price is paid.
• Traders must reply to any request from an ADR body within 20 working days (30 days if the case is complex) to say whether they will take part. If they do not reply, the ADR body may close the case and inform the consumer.
• Member States must set up measures to encourage both traders and consumers to use ADR, focusing on sectors with low participation and many complaints (e.g., transport, tourism).
• Consumers will be told in advance if automated tools are used in ADR decisions.
• ADR bodies will report less often (every two years instead of annually) and will share information on unfair commercial practices.
• The Directive will be transposed into national law within 26 months of its entry into force, with an application deadline 32 months after.

What changes result

• Consumers will have a modern, out‑of‑court dispute resolution system that covers more types of disputes and works across borders.
• Traders will face a clear deadline to respond to ADR requests, reducing uncertainty.
• Member States will be required to promote ADR participation and monitor compliance.
• Reporting requirements for ADR bodies will be simplified, while still keeping track of effectiveness and training.
• The overall framework will be fully implemented in EU law within a little over two years, with a final application period a few months later.