What is ADR?
 

ADR stands for Alternative Dispute Resolution, that is an alternative way to settle disputes. This practice has been frequently used in the Anglo-Saxon world, but it was almost unknown in Continental Europe until the early 90s, particularly in Italy where it is still very rare. It consists of a series of extra-judicial tools allowing the quick and less costly resolution of disputes between consumers and professionals/companies.  

According to EU recommendations, the basic principle of this procedure are: independence, transparency, adversarial system, effectiveness, legality, liberty and representation.  

For companies in particular, the only alternative procedure used until recent years was arbitration. Nowadays, alternative resolution procedures can be: 

-          Mediation: transaction that is carried out with the contribution of a third party who improves dialogue between disputants helping them to analyse all possible solution. Without taking a formal position in favour of one or other solution, the mediator helps to reach an agreement that is favourable to both parties. If an agreement is reached, it will be compulsory only once both parties have agreed on its effectiveness. 

-          Conciliation: a form of dispute settlement in which parties reach an agreement with the contribution of a neutral third party (the conciliator) who has no capacity to take decisions. It differs from mediation because the conciliator is generally a public body and because the resolution is reached making use of legal rules.  

-          Arbitration differs from the other two procedures, which are quite similar between them, because in this case the third party (the arbitrator) has the power to settle the dispute and his decision has the same value and effectiveness of a judgment. This procedure is mainly used in business-to-business disputes, given the higher costs and the necessary qualification of the arbitrator.