Scope

The European legislation on out-of-court consumer redress (the ADR Directive and the ODR Regulation) was adopted in 2013. The ADR Directive establishes a general framework for consumer redress, obliging Member States to ensure that consumers can submit their disputes to ADR entities, and can resolve disputes fairly, quickly and affordably. The ODR Regulation was adopted for the purpose of establishing the European Online Dispute Resolution Platform (the ODR Platform) where consumers and traders could refer their disputes over online purchases to ADR entities.

On 17 October 2023, the Commission adopted a proposal to review the ADR framework by means of:

1. A legislative proposal amending the current ADR Directive
2. A legislative proposal to repeal the ODR Regulation.
3. A recommendation addressed to online marketplaces and EU trade associations having a dispute resolution mechanism and to Member States.

On 25 September 2024, the Council adopted its negotiating position on the ADR directive, which proposed, among other things, the replacement of the ODR platform by a new digital tool and the limitation of the scope of the ADR to contractual disputes and the European territory.

On the same day, the Council reached a political agreement on the regulation for the discontinuation of the ODR platform, which has been formally adopted 19 November 2024.

Relevance

The proposal to amend the ADR Directive aims to make the ADR framework fit to the digital markets by covering all categories of disputes concerning EU consumer rights, improve the access to ADR in cross-border disputes and simplify ADR procedures to all actors. The purpose of the repeal of the ODR regulation is to replace it by user-friendly digital tools to assist consumers in finding a redress tool to resolve their dispute.

The proposal to repeal the ODR Regulation and amend the ADR directive will require amendments to the Norwegian Lov om godkjenning av klageorganer for forbrukersaker (godkjenningsloven) and Forskrift om klageorganer I forbrukersaker.

Key obligations

The proposal to repeal the ODR Regulation removes the obligation on online businesses to provide a link to the ODR platform and manage and email for communication.

The proposal to amend the ADR directive included an extension of the scope of the ADR Directive to all infringement of EU law with consumer protection dimension e.l. related to discriminatory practice, issues related to switching of service providers, emission of pre-contractual information, and remedies related to the right of repair. On 25 September 2024 the Council limited the scope of the ADR directive to disputes stemming from a contract, rather than allowing it to include non-contractual disputes as proposed by the Commission. However, the mandate makes clear that contractual obligations include the stages before the conclusion of a contract (e.g. advertising, information provision) and after the end of a contract (e.g. use of digital content). National authorities can decide whether third-country traders can participate in ADR procedures.  

Member States will designate a European Consumer Centre, consumer organization or another body as ADR contact points to facilitate communication between the parties, assist with the process, provide the parties and ADR entities with general information on EU consumer rights and on the procedural rules applied by the ADR entities identified or inform of other means of redress when a dispute cannot be resolved through an ADR procedure.