New Alternative Dispute Resolution (ADR) System For EU Consumers

In April 2013, the European Council adopted a Directive on Alternative Dispute Resolution (ADR) and a Regulation on Online Dispute Resolution (ODR) that, together, should offer all EU consumers equal access to consumer redress in all types of consumer disputes (excluding health and education sectors). The aim of the new legislation is to ensure that consumers have a fast and cost-effective means of resolving, without going to court, all kinds of disputes—contractual, domestic or cross-border—that they have with traders.

According to the ADR directive, participation of traders in ADR procedure is not required to be mandatory or the outcome of such procedures to be binding on traders. However, the ADR Directive is without prejudice to any national rules mandating, incentivizing or making subject to sanctions the participation of traders in ADR procedures or making their outcomes binding on traders. In Finland, available ADR schemes include, inter alia, the Consumer