Supporting the Secretary of State in the accreditation and oversight of ADR providers in consumer markets in the UK

Background and Context

Alternative Dispute Resolution (ADR) refers to any means of settling disputes outside of the courtroom. Typically, this can include negotiation, conciliation, mediation and arbitration. When disputes arise between consumers and traders, there are a range of options available for resolution without going to court. These options can often be quicker and cheaper, and lead to a more satisfactory solution for both parties, than taking legal action.

The Alternative Dispute Resolution (ADR) Regulations established competent authorities (a person or organisation that has legally delegated or invested powers, authority, or capacity) to certify ADR schemes and set the standards that ADR scheme applicants must meet in order to achieve certification. It also introduced new information requirements on all traders who enter contracts with consumers for the supply of goods or services. The Regulations do not make participation in an ADR scheme mandatory for business but require the Government to ensure that Alternative Dispute Resolution (ADR) that has been approved as complying with the requirements in the Directive is available for all disputes between a consumer and a business.

In the regulated sectors, the CA is the relevant sector regulator . In the non-regulated sectors, the Department of Business, Energy & Industrial Strategy's (BEIS) Secretary of State is responsible for ensuring ADR providers who make an initial application for approval are compliant with the regulations.

The Government recently published the 'Reforming Competition and Consumer Policy' consultation .Alongside considering broader changes to the scope of mandatory ADR, the consultation outlined proposals on improving the overall quality and oversight of ADR services is an important element of the proposed reform package. These improvements are centred around four key principles: neutrality, efficiency, accessibility and transparency. As part of the contract, the winning provider will work with BEIS, Competent Authorities and other relevant and qualified bodies to create a system of accreditation and oversight that applies these principles consistently across the whole of the non-regulated sector. Additional information: The initial contract will be for 3 years with the option to extend on an annual basis (3+1+1)