The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015

Statutory Instruments

2015 No. 542

Consumer Protection

The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015

Made

16th March 2015

Laid before Parliament

17th March 2015

Coming into force

for the purposes of Parts 1 to 3

7th April 2015

for the purposes of Parts 4 & 5

9th July 2015

The Secretary of State, as a Minister designated for the purposes of section 2(2) of the European Communities Act 1972 M1 , in relation to matters relating to consumer protection M2 , makes the following Regulations in exercise of the powers conferred by section 2(2) of that Act.

Marginal Citations

M1 1972 c.68.

M2 Article 2 of, and the Schedule to, The European Communities (Designation) (No. 3) Order 1993 (S.I. 1993/2661).

PART 1 U.K. General

Citation and commencement U.K.

1.—(1) These Regulations may be cited as the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015.

(2) Parts 1 to 3 come into force on 7th April 2015.

(3) Parts 4 and 5 come into force on [F1 1st October 2015].

Textual Amendments

F1 Words in reg. 1(3) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(3)

Review U.K.

2.—(1) The Secretary of State must from time to time—

(a) carry out a review of these Regulations [F2 and the amendments to legislation made by Parts 3 and 4 of the Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015],

(b) set out the conclusions of the review in a report, and

(c) publish the report.

F3 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The report must in particular—

(a) set out the objectives intended to be achieved by these Regulations [F4 and the amendments to legislation made by Parts 3 and 4 of the Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015],

(b) assess the extent to which those objectives have been achieved, and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved in a way that imposes less regulation.

(4) The first report under this regulation must be published before the end of the period of five years beginning with the day on which Parts 1 to 3 of these Regulations come into force.

(5) Reports under this regulation are afterwards to be published at intervals not exceeding five years.

Textual Amendments

F2 Words in reg. 2(1)(a) inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(4)(a)

F3 Reg. 2(2) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(2); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in reg. 2(3)(a) inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(4)(c)

“Consumer” and “trader” U.K.

3.  In these Regulations—

“consumer” means an individual acting for purposes which are wholly or mainly outside that individual's trade, business, craft or profession;

“trader” means a person acting for purposes relating to that person's trade, business, craft or profession, whether acting personally or through another person acting in the trader's name or on the trader's behalf.

“ADR entity” U.K.

4.  In these Regulations “ ADR entity” means a [F5 person] whose name appears on a list maintained in accordance with regulation 10.

Textual Amendments

F5 Word in Regulations substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), reg. 2(2)

Other definitions U.K.

5.  In these Regulations—

“ADR applicant” means a [F5 person] who wishes to become an ADR entity;

[F6 “ADR official” means an individual who (solely or with other persons) is involved in the provision of alternative dispute resolution procedures offered by an ADR entity, or ADR applicant, whether as a case handler or in a management capacity;]

“competent authority” means the Secretary of State or a [F5 person] specified in the first column of Part 1 or Part 2 of Schedule 1;

[F7 “complete complaint file” means all the relevant information relating to a dispute]

F8 ...

“domestic dispute” means a dispute concerning contractual obligations arising from a sales contract or a service contract where, at the time the consumer orders the goods or services, the consumer is resident, and the trader is established, in the United Kingdom;

“durable medium” means paper or email, or any other medium that—

(a)

allows information to be addressed personally to the recipient,

(b)

enables the recipient to store the information in a way accessible for future reference for a period that is long enough for the purposes of the information, and

(c)

allows the unchanged reproduction of the information stored;

F9 ...

F10 ...

“sales contract” means a contract under which a trader transfers or agrees to transfer the ownership of goods to a consumer, and the consumer pays or agrees to pay the price, including any contract that has both goods and services as its object;

“service contract” means a contract, other than a sales contract, under which a trader supplies, or agrees to supply a service to a consumer and the consumer pays, or agrees to pay, the price;

F11 ...

Textual Amendments

F5 Word in Regulations substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), reg. 2(2)

F6 Words in reg. 5 substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(5)(a)

F7 Words in reg. 5 inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(5)(b)

F8 Words in reg. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in reg. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(3)(b); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in reg. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(3)(c); 2020 c. 1, Sch. 5 para. 1(1)

F11 Words in reg. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(3)(d); 2020 c. 1, Sch. 5 para. 1(1)

Interpretation U.K.

6.  In regulation 5 a trader is “established”—

(a) if the trader is an individual, where the trader has his or her place of business;

(b) if the trader is a company or other legal person or an association of persons, where it has its statutory seat, central administration or place of business, including a branch, agency or any other establishment.

Contracts to which these Regulations do not apply U.K.

7.  These Regulations do not apply to a contract to the extent that it is for health services provided by health professionals to patients to assess, maintain or restore their state of health, including the prescription, dispensation and provision of medicinal products and medical devices (and “ health professionals” has the meaning given by Article 3(f) of Directive 2011/24/EU of the European Parliament and of the Council on the application of patients' rights in cross-border healthcare) M3 [F12 as it had effect immediately before IP completion day].

Textual Amendments

F12 Words in reg. 7 inserted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(4); 2020 c. 1, Sch. 5 para. 1(1) (as amended by S.I. 2020/1347, regs. 1(3), 4(6))

Marginal Citations

M3 OJ L 88, 4.4.2011, p. 45.

PART 2 U.K. Competent Authorities and ADR Entities

Functions and designation of competent authorities U.K.

8.—(1) A competent authority must perform the functions set out in this Part.

(2) Each [F5 person] specified in the first column of Part 1 of Schedule 1 is—

(a) a competent authority for the purposes of these Regulations, and

(b) the relevant competent authority in relation to alternative dispute resolution services offered by the [F5 person] specified alongside it in the second column of Part 1 of Schedule 1.

(3) Subject to paragraph (2), each [F5 person] specified in Part 2 of Schedule 1 is—

(a) a competent authority for the purposes of these Regulations in relation to the area for which it has regulatory responsibility or any area for which it has oversight under any enactment, and

(b) the relevant competent authority in relation to an ADR entity or ADR applicant which offers alternative dispute resolution services in that area.

(4) The Secretary of State is the relevant competent authority in relation to—

(a) alternative dispute resolution services offered by the Pensions Ombudsman, and

(b) an ADR entity or ADR applicant which offers alternative dispute resolution services in an area other than one referred to in paragraph (3).

Textual Amendments

F5 Word in Regulations substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), reg. 2(2)

Consumer information regarding the ODR platform U.K.

F13 8A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Reg. 8A omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(5); 2020 c. 1, Sch. 5 para. 1(1)

Assessment of application to become an ADR entity U.K.

9.—(1) An ADR applicant may apply to the relevant competent authority to become an ADR entity.

(2) The ADR applicant must supply with an application—

(a) the information in Schedule 2; and

(b) such other information as the competent authority may require in order to assess whether the ADR applicant meets the requirements in Schedule 3.

(3) The information referred to in paragraph (2) must be provided in such form as the competent authority may require.

(4) The competent authority may only approve an application if it is satisfied that—

F14 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the requirements in Schedule 3—

(i) have been met by the ADR applicant, or

(ii) will be met by the ADR applicant within a reasonable period of time of the application being granted.

(5) Where—

(a) an enactment contains the power for a competent authority to impose additional requirements which go beyond those set out in Schedule 3, and

(b) such requirements, including issuing binding solutions on traders, are imposed for the purpose of ensuring a higher level of consumer protection,

such requirements shall be deemed to be included in Schedule 3 for the purposes of this regulation, regulations 12 and 13(1) and (2) and paragraph (i) of Schedule 2.

(6) Where an application is approved, the competent authority must as soon as is reasonably practicable give written notice to the ADR applicant.

(7) Where an application is rejected, the competent authority must as soon as is reasonably practicable give written notice of this fact to the ADR applicant, which must include the grounds on which it has rejected the application.

F15 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 Reg. 9(4)(a) omitted (9.7.2015) by virtue of The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(6)

F15 Reg. 9(8) omitted (9.7.2015) by virtue of The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(6)

Listing of ADR entities U.K.

10.—(1) A competent authority must maintain a list of the ADR applicants which have been approved by it to become an ADR entity under regulation 9(4) and that list must include the information in Schedule 4 in respect of each ADR applicant.

(2) A competent authority must, without undue delay following compilation of a list, send the list to the [F16 Secretary of State].

(3) If under regulation 11(1) a competent authority receives notification from an ADR entity containing information which differs from the information included in relation to that ADR entity in the list maintained under paragraph (1), the competent authority must—

(a) amend the list to reflect the change in that information, and

(b) without undue delay, send the amended list to the [F16 Secretary of State].

Textual Amendments

F16 Words in reg. 10 substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(6); 2020 c. 1, Sch. 5 para. 1(1)

Ongoing information obligations of an ADR entity U.K.

11.—(1) In the event of a change to the information which an ADR entity has supplied under regulation 9(1), the ADR entity must, without undue delay, provide written notification of the change to the competent authority.

(2) An ADR entity must, within a month of the first anniversary of the approval date and within a month of each subsequent anniversary, publish on its website a report (“an annual activity report”) relating to the preceding year which contains the information in Schedule 5.

(3) The ADR entity must, within a month of the second anniversary of the approval date and within a month of the expiry of each successive period of two years, supply the relevant competent authority with the information in Schedule 6 relating to the preceding two year period.

(4) The annual activity report and information to be provided under paragraph (3) must be in such form as the competent authority may require.

(5) In this regulation “approval date” means the date of the written notice granting approval to the ADR entity under regulation 9(6).

Ongoing assessment of an ADR entity U.K.

12.  Following receipt of the information received under regulation 11(3) the competent authority must review the information and assess whether the ADR entity still meets the requirements in Schedule 3.

Removal of approval U.K.

13.—(1) A competent authority must provide notice in writing to an ADR entity approved by it under regulation 9(4) if the competent authority has reason to believe that—

(a) the ADR entity no longer meets a requirement in Schedule 3; and

(b) the reason the ADR entity no longer meets the requirement is within its control.

(2) The written notice must—

(a) identify the requirement in Schedule 3 which is no longer met; and

(b) require the ADR entity to meet the requirement promptly or in any event within 3 months of the date of the notice.

(3) If the ADR entity fails to meet the requirement notified to it on or before the expiry of the period specified in paragraph (2), and the competent authority considers that the failure to meet the requirement is sufficiently serious, the competent authority must—

(a) send notice in writing to the ADR entity of the withdrawal of its approval, and

(b) without undue delay, remove the ADR entity from the list maintained by it under regulation 10(1).

(4) If a competent authority removes an ADR entity from the list under paragraph (3) it must, without undue delay, send the revised list to the [F17 Secretary of State].

Textual Amendments

F17 Words in reg. 13(4) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(7); 2020 c. 1, Sch. 5 para. 1(1)

Notification of the consolidated ADR entity list U.K.

14.— [F18 (1)]  A competent authority must make the consolidated list of ADR entities published by the [F19 Secretary of State]—

(a) publicly available on its website by means of a link to [F20 a website nominated by the Secretary of State]; and

(b) available on request by a member of the public on a durable medium.

[F21 (2) An ADR entity must make the consolidated list of ADR entities published by the [F22 Secretary of State] publicly available—

(a) on its website by means of a link to [F23 a website nominated by the Secretary of State]; and

(b) wherever possible, at the ADR entity’s premises on a durable medium.]

Textual Amendments

F18 Reg. 14(1): reg. 14 renumbered as reg. 14(1) (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(7)(a)

F19 Words in reg. 14(1) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(8)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)

F20 Words in reg. 14(1) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(8)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F21 Reg. 14(2) inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(7)(b)

F22 Words in reg. 14(2) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(8)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F23 Words in reg. 14(2) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(8)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

[F24 The ADR entity’s duty to cooperate U.K.

14A.— (1) The ADR entity must take reasonable steps to—

F25 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) conduct regular exchanges of best practices with other ADR entities regarding the settlement of F26 ... domestic disputes.

(2) The ADR entity must take such steps as it considers appropriate to cooperate with bodies or persons [F27 which are enforcers under Part 8 of the Enterprise Act 2002].

(3) Cooperation under paragraph (2) includes, in particular, exchange of information on practices in specific business sectors about which consumers have repeatedly lodged complaints.]

Textual Amendments

F24 Regs. 14A-14C inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(8)

F25 Reg. 14A(1)(a) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(9)(a); 2020 c. 1, Sch. 5 para. 1(1)

F26 Words in reg. 14A(1)(b) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(9)(b); 2020 c. 1, Sch. 5 para. 1(1)

F27 Words in reg. 14A(2) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(9)(c); 2020 c. 1, Sch. 5 para. 1(1)

[F24 Agreement to submit disputes to an ADR entity U.K.

14B.   An agreement between a consumer and a trader to submit a F28 ... domestic dispute to an ADR entity is not binding on the consumer to the extent that the agreement—

(a) was concluded before the F28 ... domestic dispute materialised; and

(b) has the effect of depriving the consumer of the right to bring judicial proceedings in relation to the F28 ...domestic dispute.]

Textual Amendments

F24 Regs. 14A-14C inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(8)

F28 Words in reg. 14B omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(10); 2020 c. 1, Sch. 5 para. 1(1)

[F24 Binding outcome requirements U.K.

14C.— (1) Where an ADR entity aims at resolving a dispute by imposing a solution, the solution will not be binding on a party to the dispute unless—

(a) the ADR entity notifies the party that the outcome will be binding; and

(b) the party specifically accepts that the outcome will be binding.

(2) The requirements under paragraph (1) must be met before the ADR entity notifies the party of the outcome of the alternative dispute resolution procedure.

(3) Paragraph (1)(b) does not apply in relation to a trader where an enactment, the rules of a trade association, or term of a contract, provides that the solution will be binding on the trader.]

Textual Amendments

F24 Regs. 14A-14C inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(8)

[F29 Fees payable to the Secretary of State] U.K.

15.—(1) Where the competent authority is the Secretary of State, the competent authority may charge—

(a) an ADR applicant a fee in respect of the costs incurred by or on behalf of the Secretary of State in evaluating an application made under regulation 9, and

(b) an ADR entity a periodic fee, in respect of costs incurred by or on behalf of the Secretary of State in carrying out the functions of the Secretary of State under regulations 10 [F30 and 12].

(2) The fees referred to above shall not exceed the amount of all reasonable costs and expenses incurred by or on behalf of the Secretary of State in evaluating an application and carrying out the other functions referred to above, which shall include a sum calculated at the rate of £750 for every day, (based upon an eight hour day) spent by each person in carrying out the relevant function (which shall be pro-rated in respect of any period less than a day spent by any person).

(3) The fees are payable on invoice, to the Secretary of State, or such person as the Secretary of State may direct, and any unpaid fee may be recovered by the Secretary of State as a civil debt.

(4) The Secretary of State is not required to approve an application under [F31 regulation] 9(4) if there is a fee outstanding under this regulation in relation to that application.

Textual Amendments

F29 Words in reg. 15 heading substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(9)(a)

F30 Words in reg. 15(1)(b) substituted (9.1.2016) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) (No. 2) Regulations 2015 (S.I. 2015/1972), regs. 1, 7(3)

F31 Word in reg. 15(4) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(9)(b)

[F32 Fees payable to the Financial Conduct Authority U.K.

15A.— (1) The functions of the FCA under these Regulations are to be treated for the purposes of paragraph 23 of Schedule 1ZA to the 2000 Act (fees) as qualifying functions conferred on the FCA under that Act with the following modifications—

(a) rules made under paragraph 23 by virtue of this regulation may not provide for payment of fees by any person other than the scheme operator as defined in section 225(2) of the 2000 Act (the ombudsman scheme);

(b) rules made under paragraph 23 by virtue of this regulation are not to be treated as regulating provisions for the purposes of Chapter 4 of Part 9A of the 2000 Act (competition scrutiny);

(c) in relation to the first rules made under paragraph 23 by virtue of this regulation, section 1381 of the 2000 Act (consultation by the FCA) does not apply.

(2) In this regulation—

“the 2000 Act” means the Financial Services and Markets Act 2000;

“the FCA” means the Financial Conduct Authority as defined in section 1A of the 2000 Act (the regulators).]

Textual Amendments

F32 Reg. 15A inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(10)

Consequential amendments U.K.

16.  Schedule 7 makes amendments that are consequential on these Regulations.

PART 3 U.K. [F33 Functions of the Secretary of State]

Textual Amendments

F33 Words in Pt. 3 heading substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(11); 2020 c. 1, Sch. 5 para. 1(1)

Designation of single point of contact U.K.

F34 17.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F34 Reg. 17 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(12); 2020 c. 1, Sch. 5 para. 1(1)

[F35 Functions of the Secretary of State] U.K.

18.—(1) The [F36 Secretary of State] must—

(a) compile a consolidated list of ADR entities from the lists which [F37 the Secretary of State] receives from time to time from each competent authority under regulations 10 and 13(4), and

[F38 (b) without undue delay, publish the consolidated list on a website.]

(2) On or before 9th July 2018, and within each successive period of four years after that date, the [F39 Secretary of State] must—

(a) publish on [F40 a] website a report on the development and functioning of ADR entities; F41 ...

F41 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The report must, in particular—

(a) identify best practices of ADR entities,

(b) identify the shortcomings (if any), supported by statistics or any other data, that hinder the functioning of ADR entities in relation to domestic F42 ... disputes, and

(c) where appropriate, make recommendations on how to improve the effective and efficient functioning of ADR entities.

(4) The [F43 Secretary of State] may, for the purpose of enabling [F44 the Secretary of State] to prepare the report, require a competent authority to provide such information as it may require relating to the development and functioning of an ADR entity for which it is the relevant competent authority.

(5) A competent authority must, if requested by the [F45 Secretary of State] under paragraph (4), provide the requested information in such form and within such period as may be required by the [F45 Secretary of State].

Textual Amendments

F35 Reg. 18 heading substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(a); 2020 c. 1, Sch. 5 para. 1(1)

F36 Words in reg. 18(1) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F37 Words in reg. 18(1) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F38 Reg. 18(1)(b) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(b)(iii); 2020 c. 1, Sch. 5 para. 1(1)

F39 Words in reg. 18(2) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F40 Word in reg. 18(2) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F41 Reg. 18(2)(b) and preceding word omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(c)(iii); 2020 c. 1, Sch. 5 para. 1(1)

F42 Words in reg. 18(3)(b) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(d); 2020 c. 1, Sch. 5 para. 1(1)

F43 Words in reg. 18(4) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(e)(i); 2020 c. 1, Sch. 5 para. 1(1)

F44 Words in reg. 18(4) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(e)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F45 Words in reg. 18(5) substituted (31.12.2020) by The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(13)(f); 2020 c. 1, Sch. 5 para. 1(1)

PART 4 U.K. Trader information requirements

Consumer information by traders U.K.

[F46 19.— (1) Where, under an enactment, rules of a trade association, or term of a contract, a trader is obliged to use an alternative dispute resolution procedure provided by an ADR entity F47 ... the trader must provide the name and website address of the ADR entity F47 ...—

(a) on the trader’s website, if the trader has a website; and

(b) in the general terms and conditions of sales contracts or service contracts of the trader, where such general terms and conditions exist.

(2) Where a trader has exhausted its internal complaint handling procedure when considering a complaint from a consumer relating to a sales contract or a service contract, the trader must inform the consumer, on a durable medium—

(a) that the trader cannot settle the complaint with the consumer;

(b) of the name and website address of an ADR entity F47 ... that would be competent to deal with the complaint; and

(c) whether the trader is obliged, or prepared, to submit to an alternative dispute resolution procedure operated by an ADR entity F47 ....

(3) The trader information requirements set out in paragraphs (1) and (2) apply in addition to any information requirements applicable to traders regarding out-of-court redress procedures contained in any other enactment.]

Textual Amendments

F46 Reg. 19 substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(12)

F47 Words in reg. 19 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(14); 2020 c. 1, Sch. 5 para. 1(1)

Consumer information by online traders and online marketplaces regarding the ODR platform U.K.

F48 19A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F48 Reg. 19A omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(15); 2020 c. 1, Sch. 5 para. 1(1)

PART 5 U.K. Enterprise Act 2002

Amendment to Schedule 13 to the Enterprise Act 2002 U.K.

20.—(1) In Schedule 13 to the Enterprise Act 2002 M4 (listed Directives and Regulations), after paragraph 12 M5 insert—

“13.   Article 13 of Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) 2006/2004 and Directive 2009/22/EC.”.

F49 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F49 Reg. 20(2) omitted (9.1.2016) by virtue of The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(14)

Marginal Citations

M4 2002 c.40.

M5 Paragraph 12 was inserted by reg. 16(b) of the Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011 (S.I. 2011/1208).

Jo Swinson

Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs

Department for Business, Innovation and Skills

Regulation 8

SCHEDULE 1 U.K. Competent Authorities

PART 1 U.K.

Column 1	Column 2
Financial Conduct Authority	Financial Ombudsman Service
Legal Services Board	Office for Legal Complaints

PART 2 U.K.

Civil Aviation Authority Gambling Commission Gas and Electricity Markets Authority Office of Communications The lead enforcement authority for the purposes of the Estate Agents Act 1979 M6

Marginal Citations

M6 1979 c.38.

Regulation 9(2)

SCHEDULE 2 U.K. Information that an ADR applicant must supply

a) the ADR applicant's name, contact details and website address;

b) information regarding the structure and funding of the ADR applicant, including such information as the competent authority may require regarding its ADR officials, their remuneration, term of office and by whom they are employed;

c) the rules of the alternative dispute resolution procedure to be operated by the ADR applicant;

d) any fees to be charged by the ADR applicant;

e) where the ADR applicant already operates an alternative dispute resolution procedure, the average length of the alternative dispute resolution procedure;

f) the language in which the ADR applicant is prepared to receive initial complaint submissions and conduct the alternative dispute resolution procedure;

g) a statement as to the types of disputes covered by the alternative dispute resolution procedure operated by the ADR applicant;

h) the grounds, if any, on which the ADR applicant may refuse to deal with a dispute;

i) a reasoned statement which sets out how the ADR applicant complies, or proposes to comply, with the requirements set out in Schedule 3.

Regulation 9(4)

SCHEDULE 3 U.K. Requirements that a competent authority must be satisfied that the [F5 person] meets

Alternative dispute resolution services offered by the [F5 person] U.K.

1.  The [F5 person] —

(a) offers alternative dispute resolution services in relation to a domestic dispute orF50 ... brought by a consumer against a trader;

(b) is not formed for the purpose of dealing only with one particular domestic dispute F51 ...;

(c) does not offer alternative dispute resolution services in relation to a domestic F52 ... dispute in circumstances where an ADR official responsible for the dispute is either employed or remunerated directly by a trader who is a party to the dispute.

Textual Amendments

F50 Words in Sch. 3 para. 1(a) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)

F51 Words in Sch. 3 para. 1(b) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F52 Words in Sch. 3 para. 1(c) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(a)(iii); 2020 c. 1, Sch. 5 para. 1(1)

Access to the ADR entity U.K.

2.  The [F5 person] —

(a) maintains an up-to-date website which provides the parties to a domestic dispute F53 ... with information regarding the alternative dispute resolution procedure operated by the [F5 person];

(b) provides the information referred to in sub-paragraph (a) to a party on a durable medium, if a party requests it;

(c) ensures that its website enables a consumer to file an initial complaint submission and any necessary supporting documents online;

(d) permits the consumer to file an initial complaint submission by post, if the consumer wishes;

(e) enables the exchange of information between the parties via electronic means or, if a party wishes, by post;

F54 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F54 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F53 Words in Sch. 3 para. 2(a) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F54 Sch. 3 para. 2(f)(g) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

Expertise, Independence and Impartiality U.K.

3.  The [F5 person] —

(a) ensures that an ADR official possesses a general understanding of the law and the necessary knowledge and skills relating to the out-of-court or judicial resolution of consumer disputes, to be able to carry out his or her functions competently;

(b) appoints each ADR official for a term of office of sufficient duration to ensure the independence of that person's actions and provides that no ADR official can be relieved of his or her duties without just cause;

(c) ensures that no ADR official discharges his or her duties in a way that is biased as regards a party to a dispute, or the representative of a party;

(d) remunerates an ADR official in a way that is not linked to the outcome of the alternative dispute resolution procedure;

(e) where it appoints more than one ADR official, ensures that an ADR official, without undue delay, discloses to the [F5 person] a circumstance that may, or may be seen to—

(i) affect the ADR official's independence or impartiality; or

(ii) give rise to a conflict of interest with a party to the dispute which the ADR official is asked to resolve;

(f) ensures that the obligation to disclose a conflict of interest is a continuing obligation throughout the alternative dispute resolution procedure;

(g) ensures that in circumstances where its ADR officials are employed or remunerated exclusively by a professional organisation or business association, the [F5 person] has a ring-fenced budget at its disposal which is sufficient to enable it to carry out its functions as an ADR entity;

(h) ensures that where the operating model of its alternative dispute resolution procedure is to have a collegial body of representatives of both professional organisations or business associations, and consumer organisations, its ADR officials comprise an equal number of representatives of consumer interests and trader interests.

Conflict of interests procedure U.K.

4.  The [F5 person] has in place the following procedure in the event that an ADR official declares or is discovered to have a conflict of interest in relation to a domestic dispute F55 ...—

(a) where possible, the ADR official is replaced by another ADR official to handle the particular dispute;

(b) if the ADR official cannot be replaced by another ADR official—

(i) the ADR official must refrain from conducting the alternative dispute resolution procedure, and

(ii) the [F5 person] must, where possible, propose to the parties that they submit the dispute to another ADR entity which is competent to deal with it;

(c) if the dispute cannot be transferred to another ADR entity, the [F5 person] —

(i) must inform the parties to the dispute of the circumstances of the conflict of interest,

(ii) must inform the parties to the dispute that they have the right to object to the conflicted person continuing to handle the dispute, and

(iii) can only continue to deal with the dispute if no party to the dispute objects.

Textual Amendments

F55 Words in Sch. 3 para. 4 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(c); 2020 c. 1, Sch. 5 para. 1(1)

Transparency U.K.

5.  The [F5 person] makes the following information publicly available on its website in a clear and easily understandable manner, and provides, on request, this information to any person on a durable medium—

(a) its contact details, including postal address and e-mail address;

(b) a statement that it has been approved as an ADR entity by the relevant competent authority once this approval has been granted;

(c) its ADR officials, the method of their appointment and the duration of their appointment;

F56 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) the type of domestic disputes F57 ... which it is competent to deal with, including any financial thresholds which apply;

(f) the procedural rules of the alternative dispute resolution procedure operated by it and the grounds on which it can refuse to deal with a given dispute in accordance with paragraph 13;

(g) the language in which it is prepared to receive an initial complaint submission;

(h) the language in which its alternative dispute resolution procedure can be conducted;

(i) the principles the [F5 person] applies, and the main considerations the [F5 person] takes into account, when seeking to resolve a dispute;

(j) the preliminary requirements, if any, that a party to a dispute needs to have met before the alternative dispute resolution procedure can commence;

(k) a statement as to whether or not a party to the dispute can withdraw from the alternative dispute resolution procedure once it has commenced;

(l) the costs, if any, to be borne by a party, including the rules, if any, on costs awarded by the [F5 person] at the end of the alternative dispute resolution procedure;

(m) the average length of each alternative dispute resolution procedure handled by the [F5 person] ;

(n) the legal effect of the outcome of the dispute resolution process, including whether the outcome is enforceable and the penalties for non-compliance with the outcome, if any;

(o) a statement as to whether or not alternative dispute resolution procedures operated by it can be conducted by oral or written means (or both);

(p) the annual activity report required to be prepared under regulation 11(2).

Textual Amendments

F56 Sch. 3 para. 5(d) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(d)(i); 2020 c. 1, Sch. 5 para. 1(1)

F57 Words in Sch. 3 para. 5(e) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(d)(ii); 2020 c. 1, Sch. 5 para. 1(1)

Effectiveness U.K.

6.  The [F5 person] —

(a) ensures that its alternative dispute resolution procedure is available and easily accessible to both parties irrespective of where they are located including by electronic means and non-electronic means;

(b) ensures that—

(i) the parties to a dispute are not obliged to obtain independent advice or be represented or assisted by a third party although they may choose to do so;

(ii) the alternative dispute resolution is available free of charge or at a nominal fee for consumers;

[F58 (c) notifies the parties to a dispute as soon as it has received the complete complaint file, unless the person has already notified the parties that it refuses to deal with the dispute in accordance with paragraph 15;]

(d) notifies the parties of the outcome of the alternative dispute resolution procedure within a period of 90 days from the date on which the [F5 person] [F59 issues the notice under sub-paragraph (c)] except that, in the case of a highly complex dispute, the [F5 person] may extend this period but must inform the parties of this extension and the expected length of time that it will need to conclude the alternative dispute resolution procedure.

Textual Amendments

F58 Sch. 3 para. 6(c) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(a)

F59 Words in Sch. 3 para. 6(d) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(b)

Fairness U.K.

7.  The [F5 person] —

(a) ensures that during the alternative dispute resolution procedure the parties may, within a reasonable period of time, express their points of view;

(b) provides a party to a dispute within a reasonable period of time, upon request, with the arguments, evidence, documents and facts put forward by the other party to the dispute, including a statement made, or opinion given, by an expert;

(c) ensures that the parties may, within a reasonable period of time, comment on the information and documents provided under paragraph (b);

(d) informs the parties that they are not obliged to retain a legal advisor, but that they may seek independent advice or be represented or assisted by a third party at any stage of the alternative dispute resolution procedure;

(e) notifies the parties of the outcome of the alternative dispute resolution procedure on a durable medium and gives the parties a statement of the grounds on which the outcome is based.

8.  Subject to paragraphs 9 and 10, in relation to an alternative dispute resolution procedure which aims at resolving a dispute by proposing a solution, the [F5 person] ensures that the parties— U.K.

(a) have the possibility of withdrawing from the alternative dispute resolution procedure at any stage if they are dissatisfied with the performance or operation of the alternative dispute resolution procedure;

(b) before the alternative dispute resolution procedure commences, are informed of their right to withdraw from the alternative dispute resolution procedure at any stage;

(c) are informed, before agreeing to or following the proposed solution—

(i) that they have a choice as to whether or not to agree to, or follow, the proposed solution;

(ii) that their participation in the alternative dispute resolution procedure does not preclude the possibility of them seeking redress through court proceedings;

(iii) that the proposed solution may be different from an outcome determined by a court applying legal rules; and

(iv) of the legal effect of agreeing to, or following the proposed solution;

(d) before expressing their consent to a proposed solution or amicable agreement, are allowed a reasonable period of time to reflect.

9.  Paragraphs 8(a) and 8(b) do not apply to the [F5 person] in respect of a party who is— U.K.

(a) a trader; and

[F60 (b) obliged under an enactment, rules of a trade association, or term of a contract, to participate in an alternative dispute resolution procedure.]

Textual Amendments

F60 Sch. 3 para. 9(b) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(c)

10.  Paragraph 8 does not apply to the [F5 person] in respect of a party who is— U.K.

(a) a trader; and

[F61 (b) obliged under an enactment, rules of a trade association, or term of a contract, to accept the solution proposed by the person if the consumer accepts the solution.]

Textual Amendments

F61 Sch. 3 para. 10(b) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(d)

Legality U.K.

11.  In relation to an alternative dispute resolution procedure which aims at resolving a dispute by imposing a solution on the consumer, the [F5 person] ensures that—

(a) F62 ...the solution imposed by the [F5 person] does not result in the consumer being deprived of the protection afforded to the consumer by the provisions that cannot be derogated from by agreement by virtue of any enactment;

F63 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F62 Words in Sch. 3 para. 11(a) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(e)(i); 2020 c. 1, Sch. 5 para. 1(1)

F63 Sch. 3 para. 11(b) omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(e)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F64 12.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F64 Sch. 3 para. 12 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(f); 2020 c. 1, Sch. 5 para. 1(1)

Grounds to refuse to deal with a dispute U.K.

13.  The [F5 person] may only refuse to deal with a domestic dispute F65 ... which it is competent to deal with on one of the following grounds—

(a) prior to submitting the complaint to the [F5 person], the consumer has not attempted to contact the trader concerned in order to discuss the consumer's complaint and sought, as a first step, to resolve the matter directly with the trader;

(b) the dispute is frivolous or vexatious;

(c) the dispute is being, or has been previously, considered by another ADR entity or by a court;

(d) the value of the claim falls below or above the monetary thresholds set by the [F5 person];

[F66 (e) the consumer has not submitted the complaint to the person within the time period specified by the person, which shall not be less than the prescribed period.]

(f) dealing with such a type of dispute would seriously impair the effective operation of the [F5 person].

Textual Amendments

F65 Words in Sch. 3 para. 13 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(g); 2020 c. 1, Sch. 5 para. 1(1)

F66 Sch. 3 para. 13(e) substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(e)

[F67 13A.— (1) Subject to sub-paragraph (2), the “prescribed period” is 12 months from the date on which the trader informs the consumer that the trader is unable to resolve the consumer’s complaint (the “notice date”).

(2) Where the notice date occurred prior to the date on which the relevant competent authority approved the person as an ADR entity, under regulation 9(4), the “prescribed period” is the time period for submission of complaints as set out in the rules operated by that person on the notice date.]

Textual Amendments

F67 Sch. 3 para. 13A inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(f)

14.  The [F5 person] ensures that its policy regarding when it will refuse to deal with a dispute, including in relation to the level of any monetary threshold it sets, does not significantly impair consumers' access to its alternative dispute resolution procedures. U.K.

[F68 14A.   The decision in paragraph 13 can be made at any time prior to the expiry of three weeks of the date upon which the person received the final submissions of the parties, but it cannot be made after the person has notified the parties under paragraph 6(c) that it has received the complete complaint file.] U.K.

Textual Amendments

F68 Sch. 3 para. 14A inserted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(g)

[F69 15.   Where a person decides to refuse to deal with a dispute, the person must as soon as reasonably practicable, provide the parties with a reasoned explanation of the grounds for not considering the dispute.] U.K.

Textual Amendments

F69 Sch. 3 para. 15 substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(h)

[F70 16.   Where, following the expiry of the period referred to in paragraph 14A, it appears to the person that one of the parties has sought to mislead the person as regards the existence or non-existence of one of the grounds for it to refuse to deal with a dispute, the person may immediately refuse to deal further with the dispute.] U.K.

Textual Amendments

F70 Sch. 3 para. 16 substituted (9.7.2015) by The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(15)(i)

Compliance with the Online Dispute Resolution Regulation U.K.

F71 17.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F71 Sch. 3 para. 17 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(h); 2020 c. 1, Sch. 5 para. 1(1)

F72 18.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F72 Sch. 3 para. 18 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(h); 2020 c. 1, Sch. 5 para. 1(1)

F73 19.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F73 Sch. 3 para. 19 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(16)(h); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 10(1)

SCHEDULE 4 U.K. Information to be included in the list maintained by a competent authority

a) the name, contact details and website address of the ADR entity;

b) the fees, if any, charged by the ADR entity;

c) the language in which complaints can be submitted to the ADR entity and in which the ADR entity can conduct alternative dispute resolution procedures;

d) the types of domestic dispute F74 ... covered by the alternative dispute resolution services provided by the ADR entity;

e) the sectors and categories of domestic disputes F75 ... covered by the ADR entity;

f) whether or not the alternative dispute resolution procedure is or can be conducted as an oral or a written procedure;

g) whether the outcome of the alternative dispute resolution procedure is binding;

h) the grounds on which the ADR entity may refuse to deal with a given dispute in accordance with paragraph 13 of Schedule 3.

Textual Amendments

F74 Words in Sch. 4 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(17)(a); 2020 c. 1, Sch. 5 para. 1(1)

F75 Words in Sch. 4 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(17)(b); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 11(2)

SCHEDULE 5 U.K. Information to be included in an ADR entity's annual activity report

a) the number of domestic disputes F76 ... the ADR entity has received;

b) the types of complaints to which the domestic disputes F76 ... relate;

c) a description of any systematic or significant problems that occur frequently and lead to disputes between consumers and traders of which the ADR entity has become aware due to its operations as an ADR entity;

d) any recommendations the ADR entity may have as to how the problems referred to in paragraph (c) could be avoided or resolved in future, in order to raise traders' standards and to facilitate the exchange of information and best practices;

e) the number of disputes which the ADR entity has refused to deal with, and percentage share of the grounds set out in paragraph 13 of Schedule 3 on which the ADR entity has declined to consider such disputes;

f) the percentage of alternative dispute resolution procedures which were discontinued for operational reasons and, if known, the reasons for the discontinuation;

g) the average time taken to resolve domestic disputes F76 ...;

h) the rate of compliance, if known, with the outcomes of the alternative dispute resolution procedures;

F77 i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F76 Words in Sch. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(18)(a); 2020 c. 1, Sch. 5 para. 1(1)

F77 Words in Sch. 5 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(18)(b); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 11(3)

SCHEDULE 6 U.K. Information which an ADR entity must communicate to the relevant competent authority every two years

a) the number of disputes received by the ADR entity and the types of complaints to which the disputes related;

b) the percentage share of alternative dispute resolution procedures which were discontinued before an outcome was reached;

c) the average time taken to resolve the disputes which the ADR entity has received;

d) the rate of compliance, if known, with the outcomes of its alternative dispute resolution procedures;

e) any recommendations the ADR entity may have as to how any systematic or significant problems that occur frequently and lead to disputes between consumers and traders could be avoided or resolved in future;

F78 f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g) where the ADR entity provides training to its ADR officials, details of the training it provides;

h) an assessment of the effectiveness of an alternative dispute resolution procedure offered by the ADR entity and of possible ways of improving its performance.

Textual Amendments

F78 Words in Sch. 6 omitted (31.12.2020) by virtue of The Consumer Protection (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1326), regs. 1(3), 9(19); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 16

SCHEDULE 7 U.K. Consequential amendments

Financial Services and Markets Act 2000 U.K.

1.—(1) The Financial Services and Markets Act 2000 M7 is amended as follows.

(2) In section 404B (complaints to the ombudsman scheme) M8 —

(a) after subsection (1) insert—

“(1A) Subsection (1) does not apply if the consumer and the relevant firm agree that it should not apply.”;

(b) after subsection (2) insert—

“(2A) The way in which a complaint mentioned in subsection (2) is to be determined by the ombudsman is to be as mentioned in subsection (4).

(2B) Subsection (2A) does not apply if the consumer and the relevant firm agree that it should not apply.”; and

(c) for subsection (3) substitute—

“(3) In the following provisions of this section “relevant complaint” means—

(a) a complaint mentioned in subsection (1) other than one in relation to which subsection (1A) applies, or

(b) a complaint mentioned in subsection (2) other than one in relation to which subsection (2B) applies.”.

(3) In Schedule 17 (the ombudsman scheme) M9 —

(a) in paragraph 1 after “In this Schedule—” insert—

““ADR Directive” means Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC M10 ;

“ADR entity” means any entity which is listed by a member State in accordance with Article 20(2) of the ADR Directive;”;

(b) in paragraph 2—

(i) renumber the existing paragraph as sub-paragraph (1); and

(ii) at the end of sub-paragraph (1) insert—

“(2) The FCA must exercise any function falling within sub-paragraph (3) in a way which is consistent with enabling the scheme operator, at all times, to qualify as an ADR entity and to meet the quality requirements in Chapter II of the ADR Directive.

(3) The following functions of the FCA fall within this sub-paragraph—

(a) making rules for the purposes of section 226;

(b) approving rules made for the purposes of section 227;

(c) specifying an amount under section 229(4);

(d) approving rules made under section 230;

(e) taking steps under sub-paragraph (1);

(f) appointing or removing members of the board under paragraph 3(2);

(g) taking steps under paragraph 3A(1);

(h) making rules under paragraph 7(3);

(i) making rules under paragraph 13;

(j) consenting to scheme rules under paragraph 14(7), other than rules relating to fees;

(k) approving the fixing, variation, addition or removal of standard terms under paragraph 18, other than terms relating to the making of payments to the scheme operator; and

(l) approving arrangements under paragraph 19(3).”;

(c) in the heading immediately preceding paragraph 13, omit “procedural”;

(d) in paragraph 13, in sub-paragraph (1)—

(i) after “unless” insert “ — (a) ”, and

(ii) at the end of paragraph (a) insert

“, or

(b) in the case of a complaint other than a relevant complaint within the meaning of section 404B, the respondent agrees that the complaint should be entertained despite the complainant having referred it under the ombudsman scheme after the applicable time limit has expired.”; and

(e) in paragraph 14 after sub-paragraph (3) insert—

“(3A) The scheme operator must exercise the function of making scheme rules in a way which is consistent with enabling the scheme operator to qualify as an ADR entity and to meet the quality requirements in Chapter II of the ADR Directive.”.

Marginal Citations

M7 2000 c. 8.

M8 Sections 404-404G were substituted for the original section 404 by the Financial Services Act 2012, section 14(1).

M9 Schedule 17 was amended by the Financial Services Act 2012, section 39 and Schedule 11, paragraphs 13-30; the Consumer Credit Act 2006, sections 59(2), 61(10) and Schedule 2; the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013, S.I. 2013/1881; the Electronic Money Regulations 2011, S.I. 2011/99; the Payment Services Regulations 2009. S.I. 2009/209; the Crime and County Courts Act 2013, section 17 and Schedule 9; the Tribunals, Courts and Enforcement Act 2007, section 62(3) and Schedule 13.

M10 OJ No L 164, 18.6.2013, p63.

Regulation 20(2)

F79 SCHEDULE 8 U.K. LISTED DIRECTIVE

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F79 Sch. 8 omitted (9.1.2016) by virtue of The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015 (S.I. 2015/1392), regs. 1(2), 2(14)

Explanatory Note

(This note is not part of the Regulations)

These Regulations implement most provisions of Directive 2013/11/EU of the European Parliament and of the Council of 21st May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (OJ L 165 18.6.2013, p.63) (the “Directive”). The remaining provisions of the Directive will be implemented in future regulations. A Transposition Note detailing how these Regulations implement the Directive in the UK is available from the BIS website at www.gov.uk/bis.

Regulation 2 contains an obligation on the Secretary of State to review the Regulations. Regulations 3 to 7 set out the definitions used in the Regulations and provides that the Regulations do not apply to contracts for health services.

Regulation 8 and Schedule 1 make provision as to the persons which are a competent authority for the purposes of these Regulations, and the bodies or areas in respect of which a competent authority exercises its functions.

Regulation 9 requires a body seeking to be an approved provider of ADR services to provide certain information, specified in Schedule 2, to the relevant competent authority. The competent authority may only grant approval to an applicant ADR entity if it is satisfied that it meets the requirements specified in Schedule 3, and in certain cases additional requirements, as provided in paragraph (5).

Regulation 10 requires a competent authority to maintain a list, containing the information specified in Schedule 4, in relation to all the ADR entities which it approves.

Regulation 11 requires an ADR entity to produce an annual activity report which contains the information specified in Schedule 5 and to publish it on its website. Every two years, the ADR entity must provide the competent authority which approved it with the information set out in Schedule 6, and Regulation 12 places an obligation on the competent authority to assess whether the ADR entity still meets the requirements for approval set out in Schedule 3 when it receives that information.

Regulation 13(1) requires a competent authority to notify an ADR entity if the competent authority has reason to believe that the body no longer meets any of the requirements set out in Schedule 3 for a reason which is within the control of the ADR entity. Paragraph (3) provides that where the ADR entity has failed to meet the requirements within 3 months of receiving notification from the competent authority, the competent authority must withdraw its approval from the ADR entity, if it believes the failure is sufficiently serious.

Regulation 14 sets out the notification requirements of a competent authority.

Regulation 15 provides that the Secretary of State may charge a fee in relation to work carried out in evaluating an application for approval made by an applicant under regulation 9 and for work carried out in pursuance of functions conferred under regulations 10 to 14. These fees must not exceed the reasonable costs and expenses incurred, (including a sum equal to the number of days per person spent in carrying out the functions calculated at the rate of £750 per day).

Regulation 16 and Schedule 7 make consequential amendments to the Financial Services and Markets Act 2000.

Regulation 17 designates the Secretary of State as the single point of contact.

Regulation 18 requires the single point of contact to prepare a consolidated list of approved ADR entities notified to it by each competent authority and to forward this list to the European Commission. The single point of contact must also publish a report, on or before 9th July 2018 and every successive period of four years, on the development and functioning of ADR entities and must send the report to the European Commission.

Regulation 19(1) requires those traders who are obliged to use alternative dispute resolution to provide information regarding the ADR entity they use on their websites and in their general terms and conditions. Regulation 19(2) requires every trader to provide a consumer with information regarding the availability of alternative dispute resolution when the trader has exhausted its internal complaint handling process in relation to a complaint brought by that consumer

Part 5 of the Regulations amends Schedule 13 to the Enterprise Act 2002 and Schedule 5 identifies those parts of the Regulations which are specified for the purposes of section 212 of that Act.

An impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector will be published alongside the second set of regulations implementing the Directive to be laid before Parliament in the summer of 2015.

An Explanatory Memorandum (together with a transposition note) is available alongside the instrument on www.legislation.gov.uk.