The European Parliament and the Council have decided to shut down the EU’s Online Dispute Resolution (ODR) platform. This decision follows a comprehensive review of the platform’s performance and its cost-effectiveness, which fell below expectations. What impact will this have on your business?
Background
The ODR platform, which has been operational since 2016, was designed to facilitate the resolution of contractual disputes between consumers and traders arising from online transactions. Since its inception, online sellers and marketplaces trading within the European Union have been required to display a link to the ODR platform on their websites to make consumers aware of the option for solving any disputes online.
Despite the platform’s initial promise, the ODR platform did not meet expectations. While it attracted millions of visitors annually, only a small fraction of these visits resulted in formal complaints, and even fewer cases were successfully resolved through the platform – only about 200 cases per year were resolved by an alternative dispute resolution (ADR) provider via the ODR platform.
What does this mean for businesses?
The new Regulation (EU) 2024/3228, which governs the closure of the ODR platform, came into force on 19 January 2025. Here are the key dates and actions to remember:
- 20 March 2025: No new complaints can be submitted via the platform.
- 20 July 2025: The platform will be permanently closed, and all related data will be deleted.
From 20 July 2025, businesses will no longer be required to display a link to the ODR platform on their websites or in their general terms and conditions. Be sure to update your websites or terms and conditions accordingly!
Reform of the ADR Directive
Alongside the abolition of the ODR platform, the ADR Directive (2013/11/EU) is undergoing significant reforms to enhance consumer rights and modernise out-of-court dispute resolution. The aim is to make ADR more efficient and effective. Proposed changes include:
- Expanding the geographical scope to include traders outside the EU.
- Expanding the material scope by incorporating digital products, pre-contractual claims and non-contractual disputes such as discrimination or unfair commercial practices.
- Setting response deadlines for businesses in consumer-initiated ADR proceedings.
- Requiring businesses to provide written reasons for refusing to comply with ADR body decisions.
- Considering the development of a new ODR platform.
There are many upcoming changes in the ADR landscape!
