New ADR rules come into force

The Alternative Dispute Resolution (ADR) directive is a new piece of European law, which will have implications across the UK and other member states.

The new rules aim to ensure that there are consistent ADR schemes across all industries.

At present, schemes are compulsory in regulated sectors, such as financial services and energy. But in other sectors, it is up to individual businesses as to whether they sign up to voluntary schemes.

Under the directive, steps will be taken to ensure that ADR is available if all parties agree to use it. Businesses will have a statutory obligation to provide information to consumers as regards the availability of appropriate schemes.

The changes are perhaps less radical than some companies had originally expected – the Government has listened to businesses and ruled out the creation of a single consumer ombudsman.

There are nonetheless a number of obligations under the new rules that businesses need to be aware of. Companies will also have to ensure that they have amended their contractual terms and website information accordingly.

At Royds, our dispute resolution team is made up of specialist lawyers who work towards resolving commercial disputes. For more information about the services we provide, please visit or email Stewart Wilkinson, Chris Rodda or Stephen Welfare.