Alternative Dispute Resolution (ADR) Directive and repeal of the Online Dispute Resolution (ODR)

Directive 2025/2647 on alternative dispute resolution for consumer disputes

Background and Scope

Directive 2013/11/EU established the ADR framework in 2013, providing a voluntary mechanism for out-of-court resolution of consumer-trader disputes. Regulation (EU) No 524/2013 created the ODR platform for online disputes, operational since 2016. However, with only 2% of complaints receiving positive responses (approximately 200 cases annually), the Commission proposed modernizing the system in October 2023. The revised ADR Directive aims to modernize the framework for e-commerce growth, enhancing consumer protection and clarifying obligations for traders and ADR entities.

Key Obligations

• Enhanced Trader Obligations: Scope extended to third-country traders directing activities to EU consumers. Traders must reply within 20 working days (extendable to 30 for complex disputes) when contacted by ADR entities. Clear ADR information must be provided on websites.
• Expanded material scope: Covers pre-contractual and post-contractual disputes, including misleading advertising and missing pre-contractual information. Includes digital content/services contracts where consumers provide personal data instead of payment.
• ADR Entity Requirements: Procedures must be accessible to vulnerable consumers through inclusive tools. Right to human review of automated procedures. Entities may bundle similar cases and must publish activity reports every two years.
• New ADR Contact Points: Replace ODR platform, providing assistance to consumers and traders in accessing competent ADR entities, particularly for cross-border disputes.