allaboutwomen

A Greek consumer was charged twice by his bank while shopping in London - but thanks to a new-style resolution scheme the second charge has been refunded.

So-called alternative dispute resolution schemes (ADR) are designed to offer European consumers a quick and cheap way to settle disputes about goods or services without going to court. The problem is that hardly anyone knows about them.

The European Commission has launched a public online consultation on ADRs for consumers, which runs until mid-March. There are at least 750 such schemes in the EU, but consumers can't always get the help they need. The results of this consultation will shape new laws which are being drawn up by the Commission and are scheduled for November.

ADR schemes involve a mediator who can propose a solution or bring the parties together to resolve their dispute. They mainly cover individual cases, but can also handle together several individual cases when they are similar. ADR bodies have been more widely set up to solve disputes in the telecommunications, travel/tourism and financial services sectors.

The problem is that many consumers and retailers don't know that ADR schemes exist. In 2009, only 3% of EU consumers took their case to an ADR body, and only 9% of European retailers used an ADR scheme.

Traders' reluctance to engage is another issue. Nearly two-thirds of ADR schemes are voluntary and only 6% of European traders are members of any scheme. Traders do not always comply with decisions reached since these are non-binding.

Further action at EU level is therefore needed in order to set up an EU-wide system. For more information on ADR and other ways of dealing with disputes go to the Commission's website.