Alternative Dispute Resolution
(ADR)
Alternative Dispute Resolution refers to methods of resolving disputes without going to court, including mediation, conciliation, arbitration, and ombudsman schemes. Many consumer contracts now include ADR clauses, and traders in some regulated sectors must be members of an approved ADR scheme. ADR is generally faster and cheaper than litigation, though arbitration decisions can be legally binding.
The Alternative Dispute Resolution for Consumer Disputes Regulations 2015 transposed the EU ADR Directive and require traders to inform consumers about approved ADR bodies even where they are not obliged to use them. Approved bodies are certified by the Chartered Trading Standards Institute (CTSI). In regulated sectors, ADR is mandatory: the Financial Ombudsman Service (FOS) covers financial products, Ombudsman Services covers some energy and communications complaints, and CISAS and Ombudsman Services: Communications handle telecoms. The typical process is: raise complaint with the trader; if unresolved after eight weeks (or if a deadlock letter is issued sooner), refer to the relevant ADR body; the referral window is usually six months from the final response. ADR outcomes are free for consumers; some arbitration schemes charge small fees but must refund them if you win.