Alternative Dispute Resolution (ADR)

Alternative Dispute Resolution (ADR)

Thought leaders, especially in Europe, are considering policies to expand Alternative Dispute Resolution, which can offer fairer, more efficient access to justice than collective redress.

Alternative Dispute Resolution (ADR) mechanisms include arbitration and mediation, as well as small claims procedures. Each of these devices is described in detail in ILR’s paper ADR as a Superior for Redressing Consumer Harms in Europe.

Thought leaders, especially in Europe, are considering policies to expand Alternative Dispute Resolution, which can offer fairer, more efficient access to justice than collective redress.

ADR is widely used in the U.S., where empirical studies demonstrate that it is less expensive, speedier, and often offers more compensation for the consumer. For more information on ADR in the United States, visit ILR’s arbitration website. There are also well-established ADR procedures in many of the EU member states and in other countries around the world.

Recently, the EU Directorate General for Health and Consumers (DG SANCO) has expressed increasing interest in ADR. While DG SANCO has been studying this option since 2002, the new Commissioner has publicly announced that he intends to pursue ADR in consumer cases. In April 2010, DG SANCO released a study on business attitudes towards the provisions of enforcement and redress, which demonstrated that, while not all businesses know about ADR, those that use it believe it to be effective. Approximately half of retailers would rather use ADR to resolve a dispute, while only 6% said they would rather collective court proceedings.

Issue Resources: Alternative Dispute Resolution (ADR)

ADR as a Superior Mechanism for Redressing Consumer Harms in Europe

In view of the many disadvantages of class actions, the U.S. Chamber’s Institute for Legal Reform commissioned this paper to study alternatives that could better serve the interests of European consumers. Fortunately, several alternatives already exist that, with minor adjustment, can respond to the concerns of those who advocate the adoption of U.S.-style class actions in Europe. Small claims procedures, arbitration and mediation are but some of the possible alternatives. Moreover, if the European Community or its individual members were unfortunately to decide to adopt a class actions system, then at least one of the proposed alternatives – mediation – should be made a mandatory part of any class-action system at an early stage in the proceedings.