On October 17, 2023, the European Commission adopted a proposal to review the Alternative Dispute Resolution (“ADR”) framework.  The review consists of: (i) a proposal to amend the ADR Directive; (ii) a proposal to repeal the Online Dispute Resolution (“ODR”) Regulation; and (iii) a recommendation addressed to online marketplace and EU trade associations. 

Amended ADR Directive

The proposed amendments to the ADR Directive aim to modernize and simplify the current ADR framework.  The key proposals would:

  • expand the material scope of the ADR Directive requiring Member States to facilitate access by consumers to ADR procedures where they think that a trader has breached its pre-contractual obligations (e.g., by showing misleading advertising or providing incomplete pre-contractual information) or other statutory rights of the consumers (e.g., the right not to be subjected to geo-blocking practices);
  • expand the territorial scope of the ADR Directive to cover disputes between consumers and non-EU traders offering goods or services to consumers residing in the EU; and
  • require traders against whom a consumer initiated ADR proceedings to inform the relevant ADR entity (within 20 days) whether or not they plan to participate in the ADR proceedings.  However, just as under the current ADR Directive, traders’ participation in an ADR procedure remains voluntary, unless Member States’ laws implementing the Directive provide otherwise.

ODR Regulation repeal

The European Commission proposal aims to repeal the ODR Regulation, which created the European Online Dispute Resolution Platform on the basis that this platform was infrequently used.  The ODR Platform will be replaced by digital interactive tools directing consumers to consumer redress solutions.

Recommendation on quality requirements

The European Commission recommends that ADR procedures offered by online marketplaces and EU trade associations, which fall outside the scope of the ADR Directive, adopt the quality criteria enshrined in the ADR Directive.  Such quality criteria include the effectiveness and fairness of the ADR procedures, as well as the expertise, independence and impartiality of the persons in charge of running these procedures.  The European Commission’s paper provides some specific recommendations on how online marketplaces can ensure that their ADR procedures meet these criteria.

Next Steps

The proposed legislation is at the start of the EU’s legislative process.  The European Parliament and Council of the EU will each now develop their own positions on the proposed legislation, before engaging in negotiations across the three institutions to finalize the texts.  

Although the Commission’s proposed changes to the ADR Framework so far have been relatively tame, we will make sure to keep a watchful eye on the negotiations going forward.

This blog post was written with the contributions of Alberto Vogel.

Photo of Jane Pinho Jane Pinho

Jane Pinho is co-chair’s Covington’s Entertainment and Media Industry Group and is a partner in the Technology and Communications practice and the International Business Reorganization practice. She has advised international streaming services on their content acquisition strategies, on new product launches and global…

Jane Pinho is co-chair’s Covington’s Entertainment and Media Industry Group and is a partner in the Technology and Communications practice and the International Business Reorganization practice. She has advised international streaming services on their content acquisition strategies, on new product launches and global expansions, and on media regulation and licensing for the past decade.

Jane works with media industry leaders with global operations, including streaming services, video games and interactive entertainment companies, and social media platforms. She has particular experience advising in relation to the creation, acquisition, and distribution of digital content in the UK and Europe, in relation to the multi-territory launch, expansion, monetization and marketing of digital media products and services and in relation to compliance with the UK’s broadcasting, on-demand, video-sharing platform and online safety regimes, representing clients facing regulatory scrutiny. She also has experience advising media and technology companies on UK and EU consumer protection law, including on an investigation by the EU Commission and the Consumer Protection Co-operation Network.

Jane is also a key figure in Covington’s International Business Reorganization practice. She has managed global post-acquisition business reorganizations, pre-sale and pre-spin business separations and tax reorganizations for companies with substantial global footprints for more than a decade.

Photo of Sinead McLaughlin Sinead McLaughlin

Sinead McLaughlin has a broad commercial disputes practice, with a particular focus on crisis management and multi-party disputes, across a number of sectors, including advising major banks and financial institutions, media and technology companies.

Her work often requires her to work across a…

Sinead McLaughlin has a broad commercial disputes practice, with a particular focus on crisis management and multi-party disputes, across a number of sectors, including advising major banks and financial institutions, media and technology companies.

Her work often requires her to work across a range of practice areas, conducting internal investigations, advising clients in relation to investigations by regulators and other authorities, and acting in any subsequent disputes or litigation which may arise.

Sinead has significant experience working in-house (on secondment), which she leverages for the benefit of her clients. Her secondments have included a long secondment at a leading global investment bank where she advised the bank on a range of contentious commercial and regulatory matters, across the firm’s businesses throughout EMEA; and to a large global company specializing in in e-commerce, cloud computing and other services, advising on contentious data and privacy issues.

Her regulatory enforcement experience includes acting in investigations alleging market abuse, systems and controls failings, financial reporting errors and GDPR compliance matters; in litigation she has acted in claims relating to data and privacy issues, mis-selling, allegations of anti-competitive behavior, and a range of contractual disputes and tortious actions. Sinead also has significant experience acting for defendants in large group litigation (also known as collective actions) in the English High Court.

Sinead co-chairs the firm’s Women’s Forum in the London office and is also a member of the Covington’s Diversity and Inclusion Committee in EMEA.

Photo of Anna Sophia Oberschelp de Meneses Anna Sophia Oberschelp de Meneses

I advise companies across the EU on technology laws, with a focus on data protection, cybersecurity, and current consumer protection laws. I help businesses navigate complex regulations like the GDPR, AI Act, Digital Services Act, Unfair Commercial Practices Directive, and the upcoming Digital…

I advise companies across the EU on technology laws, with a focus on data protection, cybersecurity, and current consumer protection laws. I help businesses navigate complex regulations like the GDPR, AI Act, Digital Services Act, Unfair Commercial Practices Directive, and the upcoming Digital Fairness Act, turning legal requirements into practical, business-friendly solutions.

In data protection, I support tailored GDPR compliance, international data transfers, and privacy-conscious marketing. On cybersecurity, I guide clients through risk assessments, incident response, and evolving laws such as NIS2 and the Cyber Resilience Act. Regarding consumer protection, I advise on existing laws to help businesses revise their terms and conditions for compliance and review online interfaces to ensure all mandatory consumer information is clearly provided, tackling issues like dark patterns and unfair contract clauses.

Fluent in multiple languages and experienced across borders, I’m passionate about helping clients embed compliance into their operations and thrive in the fast-changing digital landscape.