Mandatory Alternative Dispute Resolution (ADR) Proposed For Two Non-Regulated Sectors

Following the Lord Chancellor's speech at London International Disputes Week in which he indicated that ADR should become mainstream for all types of disputes, the government's recent consultation on 'Reforming Competition and Consumer Policy' unsurprisingly includes proposals to increase the uptake of ADR. In the consultation ADR is suggested as a way to support consumers in enforcing their rights independently.

The proposals within the consultation highlight that in regulated sectors such as financial services and energy it is generally mandatory for traders to participate in ADR schemes. However, for sectors where participation is voluntary there is little engagement, particularly amongst small and medium sized enterprises. The government considers this is an area of concern, particularly if those sectors are also ones where consumers are experiencing high levels of harm.