ADR In this feature the system approval process frequently asked questions Keeping it out of court CTSI seeks alternative dispute resolution representatives as part of its new role, says Ivy Hughes A s the competent body for the EU Directive on Alternative Dispute Resolution (ADR), CTSI is actively looking for organisations that can potentially serve as ofcial ADR bodies for various consumer sectors. ADR is a system through which a third party settles disagreements between consumers and businesses. Its a process designed to keep disagreements out of the courts, as well as provide greater protections for businesses and consumers. As a consumer and business advocate, CTSI is encouraged by the directive and the additional redress it will provide to consumers and legitimate businesses, said Andy Allen, CTSI lead on ADR. Our challenge now is reviewing potential ADR bodies, and we encourage organisations with a strong interest in consumer protection to apply through our website. The approval process and criteria outlined by the directive, and delivered by CTSI, are arduous and designed to ensure that disputes are resolved quickly and effectively. CTSI will ensure that each ADR body meets the quality criteria provided by the directive through an audit process, which we are currently developing. More than one approved body can operate in a specied sector. There is a reporting requirement under which approved bodies supply performance information to the relevant competent authority. This is then passed to CTSI as the single point of contact for collating and passing such information to the EU Commission. Trading standards ofcers may be asked by business owners about their role in ADR, so weve drafted, below, a few frequently asked questions that may be useful for local business owners. The approval process and criteria outlined by the directive, and delivered by CTSI, are arduous, and designed to ensure that disputes are resolved quickly and effectively ANDY ALLEN F REQUENTLY ASKE D QUESTIONS What does the law require of a trader? If a trader and consumer fail to resolve an initial complaint, the trader will be required to give the consumer the details of the relevant approved body, and indicate whether he/she intends to use it. There is no requirement on the trader to use the approved body, or any other body. What does the law require of a trade association? The directive requires the Department for Business, Innovation & Skills to ensure all trade associations approved as ADR bodies present this information on their website in a clear and concise manner. Essential information to be given includes: the name of any network of bodies facilitating cross-border alternative dispute resolution, of which it is a member; the type of domestic disputes and cross-border disputes it is competent to deal with, including any applicable financial thresholds; the procedural rules of the alternative dispute resolution procedure that it operates; and the grounds on which it can refuse to deal with a given dispute. Does the trader have to follow the decision of the ADR body? Often, decisions by the ADR body are not legally binding on the trader, but the trader might have agreed to be bound by the decision as part of a membership agreement of a particular scheme. In most instances, where they have agreed to use ADR, traders will voluntarily follow the decision of the ADR body. Generally, where the decision is not binding, the consumer if unhappy with the ADR bodys decision will retain the right to take the trader to court. If a business already uses an ADR provider, must it switch to an approved body? There is nothing to stop a trader indicating to a customer the approved body in a sector, and then stating it will be using another, non-approved body. Ultimately, it is hoped that customer pressure, and the opportunities for growth brought by approval, will result in most bodies being approved, and traders seeing the benefits of using such organisations. More information, including ADR guidance, can be found on CTSIs website. Credits Published Ivy Hughes is a former senior Thursday 28 May, 2015 communications executive at CTSI. Images: Stocklite / Shutterstock To share this page, in the toolbar click on