Consumer dispute resolution

Consumer dispute

In any commercial relationship, traders and consumers may have disputes to resolve, for instance if a product is not delivered on time or in good condition, or if the consumer has not paid the full purchase price.

3 ways to resolve a consumer dispute

Informal settlement

Alternative dispute resolution mechanisms

Legal action

In the event of problems when purchasing a product or service in any EU country, consumers may attempt to settle the dispute through:

informal settlement: directly with the trader or through a consumer organisation
alternative dispute resolution mechanisms: e.g. mediator, ombudsmen, complaints board, the EU online dispute resolution website
formal legal action: through the European small claims procedure and the European payment order or by going to court

Alternative dispute resolution

Many consumers facing a disagreement with a trader do not go to court because the amounts involved are too small, the procedures take too long or they are not confident of reaching a satisfactory solution.

This is why the EU has developed new measures to facilitate dispute resolution.

Alternative dispute resolution (ADR) consists of mechanisms for consumers to settle disputes with companies with the assistance of an impartial dispute resolution body, without going to court. Using ADR has the advantage of being easier, faster and cheaper than going to court.

On 17 November 2025, the Council approved the updated alternative dispute resolution directive which:

introduces a 20-day deadline for companies to respond to ADR bodies regarding specific cases
promotes stronger cooperation between ADR entities and consumer protection authorities
clarifies how automated systems, such as artificial intelligence, machine translation and other IT solutions, should be used to make ADR procedures more efficient, especially in cross-border cases
extends the scope to disputes between an EU-based consumer and a trader in a third country, subject to certain conditions

Additionally, member states will be required to adopt measures to promote the use of ADR such as financial incentives or public awareness campaigns.

In November 2024, the Council has adopted a regulation to shut down the European online dispute resolution platform, which only handled an annual average of 200 cases EU-wide, and to replace it by a new, more user-friendly digital tool, to be developed by the Commission.

Collective redress

Consumers who have fallen victim to unlawful practices may hesitate to take legal action because, for instance, they are not sure of their rights or what procedures to follow, or because they are put off by the high expected costs of taking individual action.

This is why, through the directive on representative actions, the EU has introduced rules to enable consumers across the EU to collectively seek effective judicial protection when traders violate EU laws in areas such as financial services, travel, tourism, energy, health, telecoms and data protection.

These measures, in application since 25 June 2023, aim to:

enable consumers to take collective action to claim their rights and obtain the cessation or prohibition of a practice (injunctive measures) or compensation, replacement or repair (redress measures)
empower qualified entities (such as consumer organisations) to launch actions on behalf of a group of consumers, including consumers from different EU countries
contribute to creating a level playing field between traders

Collective redress for consumers : Council adopts position at first reading (press release, 4 November 2020)

Consumer dispute resolution