The ADR

What can we do if we have a problem with a company and, even after sending a complaint letter, we do not manage to receive the compensation we are entitled to? The EU has always paid a considerable attention to this kind of situations and has widely fostered the ADR procedure, which is an alternative way of disputes resolutions, in different fields (such as economic, financial and insurance field) and has also promoted the spread of the conciliation culture, as an added value to consumers’ protection and as an effective tool to support the EU Internal Market. Thanks to the EU initiative, supported by all the States Members, we can now state that it is nowadays possible to solve a disputes without taking legal proceedings.

The term ADR stands for « Alternative Dispute Resolution » - meaning an alternative way to solve queries. The ADR systems may vary according to the role played by the third party in the conciliation procedure:

• In some cases, the third party, the conciliator, helps the two main parties to reach an agreement, without taking any formal position in the dispute. During these proceedings, called “conciliation” or “mediation”, the parties themselves try to have a dialogue and reach an agreement, avoiding to argue and worsen the conflict between them. They take steps to solve the dispute, trying to reach an amicable settlement of the dispute in first person. This way, a consensus-based solution is found which goes beyond any strictly judicial proceeding and which eventually helps the two parties to keep their business relations.
   

• In some other cases the conciliator finds a solution which is then indicated to the parties: he either delivers a solution of the dispute or he provides a recommendation the parties may or may not follow (as it is for "Consumer Complaint Boards" of Scandinavian countries) or he can suggest to take legal steps if necessary or, lastly, he may deliver a decision which is binding for the trader. This is the case of the "Ombudsman" created in some specific fields (such as banks and insurances) whose decisions are binding for the companies involved in the procedure. However, if the consumer is not satisfied with the outcome of the conciliation procedure, he may take legal steps.
   

• In other cases, more similar to the classic judicial proceeding, the conciliator (called “arbiter”) delivers a decision to resolve the dispute. This decision can be adopted by applying classic law provisions (classic arbitration) or with equity (“amicable settlement”) and it is binding for the parties. The arbiter’s decision is called “arbitrator’s award” and once the dispute has been resolved before the arbiter, it usually cannot be lodged before a judicial court.
   

The European Consumer Centre is deeply involved in supporting and promoting the ADR procedures as an alternative way to resolve disputes compared to the judicial one which risks to be even more complex and expensive when it involves two parties (consumer/trader) having different nationalities.

In fact, when we do not manage to resolve our cases in a positive way as ECC Italy, we inform the consumer about this further procedure he could start. The ADR is a procedure where both parties are free to interact and present his arguments directly without having anyone else do this on his behalf, before an impartial arbitrator whose main task is to facilitate and foster the dialogue between the parties. Any legal element is involved in this procedure, as it would be in case the dispute was lodged before a judicial court, since the aim of the procedure is not to detect the right party or the wrong one, while it is to help both parties find the best and most appropriate solution to the present case.