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ARTICLE · 24 MAY 2013

New EU Rules On Online And Alternative Dispute Resolution - A Win/Win?

Morrison Foerster
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The Council of the European Union recently adopted a regulation on online dispute resolution and a directive on alternative dispute resolution.

United StatesConsumer Protection

On 22 April 2013, the Council of the European Union (the "Council") adopted a regulation on online dispute resolution ("ODR") and a directive on alternative dispute resolution ("ADR"). Tonio Borg, the EU's Commissioner for Health and Consumer Policy has described the new regime as a "...win-win for consumers, who will be able to resolve their disputes out-of-court in a simple, fast and low-cost manner, and also for traders who will be able to keep good relations with customers and avoid litigation costs."

What is the difference between a Directive and a Regulation?

EU regulations become law in the UK and each other EU member state automatically, without the need for local state-level implementing laws; whereas EU directives require separate action by each member state to bring them into force in each country within a given timescale. Issues can emerge if, as often happens, different member states convert EU directives into local laws through different routes

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