European Union: Council and Parliament reached agreement on proposal for a Directive amending Directive 2013/11/EU on alternative dispute resolution for consumer disputes

On 26 June 2025, the European Parliament and the Council reached a political agreement on the Commission proposal for a revised Alternative Dispute Resolution (ADR) Directive, which revises Directive 2013/11/EU on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828. The revisions aim to simplify and modernise the out-of-court resolution of disputes between businesses and consumers across the European Union, adapting procedures to digital markets. The scope of the directive is extended beyond contractual disputes between EU consumers and EU traders to cover disputes related to pre-contractual obligations, digital content and services, as well as non-monetary contracts. It also encompasses non-EU traders who are willing to engage in ADR procedures. The revised directive introduces a requirement for traders to reply to ADR inquiries within 20 working days, or 30 working days in complex cases. A lack of response will be treated as a refusal. Member States are expected to put in place measures to encourage participation from both consumers and traders, such as through information campaigns or financial incentives, paying particular attention to sectors like transport and tourism with high complaint numbers. ADR entities will be able to bundle similar cases against the same trader with consumer consent and are required to maintain websites where consumers can easily find information, submit, and track complaints online.