Council and European Parliament reach political agreement on Revision of the ADR Directive
The Council and the European Parliament have reached a political agreement to modernise the EU’s alternative dispute resolution (ADR) rules, aiming to enhance consumer protection in the digital economy. The revised directive will update the 2013 ADR framework by clarifying its scope, extending it to include disputes with third-country traders targeting EU consumers, and requiring businesses to respond to ADR bodies within 20 working days (30 in complex cases). Member states must introduce incentives—such as awareness campaigns or financial benefits—to promote participation among consumers and traders, particularly in sectors with high complaint volumes like air transport and tourism. The Commission will also launch a multilingual, digital tool offering practical guidance, machine translation, and ADR access information. To ensure transparency and fairness, consumers must be notified if automated systems such as AI are used and retain the right to human review. The directive permits ADR entities to consolidate similar complaints for efficiency. The Council will now formally adopt the agreement, followed by a second reading vote in the European Parliament. The directive will enter into force 20 days after its publication in the EU Official Journal, with application beginning 32 months later.