Businesses urged to comply with Alternative Dispute Resolution law

The Government has urged businesses to ensure they comply with Alternative Dispute Resolution (ADR) regulations.

Mark Aspin Director and Head of Dispute Resolution provides an update.

ADR is a process for resolving disputes between consumers and traders that doesn’t involve going to court. This is done by means of putting the consumer and the trader in contact with a neutral third party, with the aim of assisting a speedy, mutual agreement.

The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 came into effect nearly 10 years ago, but it’s thought many businesses are unsure how it works and are failing to comply.

The Department for Business and Trade and the Chartered Trading Standards Institute have published guidance to improve understanding and increase compliance.

The regulations affect all traders who sell goods and services to consumers, except for a very small section of health sector contracts. Applicable sectors include finance, insurance, energy, retail, leisure services and transport services, to name just a few.

Businesses are required by law to inform consumers about the process and their engagement in ADR. 

The regulations are relevant to sole traders and limited companies, whether working from a business premises or at home. From gardening companies, cafés, pubs and large retail outlets, through to corner shops, petrol stations and even ice cream vans, they are all subject to these regulations if their internal complaints handling process has not been able to resolve the dispute.

You can access the guidance here Alternative Dispute Resolution

If you would like more information about the issues raised in this article or any aspect of litigation or ADR please contact Mark Aspin on 01228 516666 or click here to send him an email.