The Alternative Dispute Resolution for Consumer Disputes (Amendment) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 (S.I. 2015/542) (“the ADR Regulations”) and make amendments to certain other Acts and Statutory Instruments.

The purpose of these Regulations is four-fold: (i) to implement those 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”) that were not implemented by the ADR Regulations; (ii) to implement those provisions of Regulation (EU) No 524/ 2013 of the European Parliament and of the Council of 21 May 2013 on online dispute resolution for consumer disputes and amending Regulation (EC) 2006/2004 and Directive 2009/22/EC(OJ L 165 18.6.2013, p.1) (“the ODR Regulation”) which need specific transposition into domestic law in order to make the obligations they contain enforceable; (iii) to make certain corrections to the ADR Regulations; and (iv) to postpone the coming into force of Parts 4 and 5 of the ADR Regulations to 1st October 2015.

Those regulations that implement the Directive or make corrections to the ADR Regulations come into force on 9th July 2015. Those regulations that implement the ODR Regulation come into force on 9th January 2016.

Part 2 makes amendments to the ADR Regulations.

Regulation 2(2) corrects terminology. Regulation 2(3) substitutes a new coming into force date for Parts 4 and 5, the effect of which is to postpone the commencement of the trader information requirements until 1st October 2015. Regulation 2(4) amends the review clause to include a duty to review the amendments made by Parts 3 and 4 of these Regulations. Regulation 2(5)(a) substitutes a definition, and regulation 2(5)(b) and (c) inserts three additional definitions. Regulation 2(6) removes the requirement for an ADR entity to be established in the UK. Regulations 2(7) and 2(8) place various obligations on ADR entities as regards information they must publish, information they must give a party if the outcome of the alternative dispute resolution procedure is to have binding effect on a party and requirements for cooperation with other bodies. Regulation 2(8) also contains a provision which sets out when an agreement between a consumer and trader to submit a dispute to an ADR entity is to be considered non-binding on the consumer. Regulation 2(10) contains a provision to enable the Financial Conduct Authority to charge fees for the functions it discharges under the ADR Regulations. The amendment contained in regulation 2(11) clarifies that the single point of contact must send the consolidated list of ADR entities to the European Commission on the standardised electronic form provided by the European Commission. Regulation 2(12) substitutes revised drafting of the provisions which set out what information traders must give consumers, and regulation 2(13) adds a provision regarding what information online traders must give consumers. The effect of regulation 2(14) and regulation 9 is that as of 9th January 2016 a breach of Article 13 of the Directive (implemented as regulation 19(1) and (2) of the ADR Regulations) is enforceable in the UK under Part 8 of the Enterprise Act 2002 (c.40) because the Directive is listed in the Schedule to the Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003 (S.I. 2003/1374) rather than by virtue of being specified in regulation 20(2) and Schedule 8 of the ADR Regulations. Regulation 2(15)(a) to (i) makes various clarifications to the drafting of certain paragraphs of Schedule 3. Regulation 2(15)(j) imposes additional obligations on ADR entities when dealing with complaints it receives through the platform for online dispute resolution.

Regulations 3, 4, 5 and 7 of Part 3, and regulation 8 of Part 4, make amendments to various Acts and Statutory Instruments to transpose Article 12 of the Directive.

Regulation 6 of Part 3 amends Schedule 13 to the Enterprise Act 2002, and regulation 9 of Part 4 amends the Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003 to ensure that a breach of Article 14 of the ODR Regulation is enforceable in the UK under Part 8 of the Enterprise Act 2002.

The Regulations have the same extent as the provisions that they amend.

An impact assessment of the effect that the ADR Regulations (as amended by these Regulations) will have on the costs of business, the voluntary sector and the public sector is available from the European Consumer Policy Team, Department for Business, Innovation and Skills, 1 Victoria Street, London, SW1H 0ET and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.

A transposition note setting out how the ADR Regulations and this instrument and the other provisions of these Regulations, transpose the provisions of the Directive and the ODR Regulation is available on www.gov.uk/government/publications.