Online traders have been required to inform consumers about the EU's Online Dispute Resolution (ODR) platform on their websites. The abolition of this ODR platform is now a done deal. At the same time, the EU is planning a major reform of the Alternative Dispute Resolution Directive (ADR Directive) to strengthen consumer rights and modernise out-of-court dispute resolution. Businesses need to act to comply with the new rules.
Some background
The Regulation on Online Dispute Resolution for Consumers (Regulation (EU) No 524/2013, ODR Regulation) has been in force in the EU since 2016. Under the Regulation, the EU has set up and operates the ODR Platform to help consumers resolve cross-border disputes with online traders quickly and effectively out of court. All online sellers and marketplaces must display a prominent link to the ODR Platform if their offer is directed to consumers (B2C).
However, the ODR platform has been little used and will therefore be discontinued. The very short Regulation (EU) 2024/3228, which regulates the closure of the previous ODR platform, entered into force on 19 January 2025. From 20 March 2025, no new complaints can be submitted via the platform. On 20 July 2025, the platform will be permanently closed and all related data will be deleted.
Action required
Businesses that refer to the ODR platform in their general terms and conditions, imprint or elsewhere on their website should remove these references by 20 July 2025. References pursuant to Art. 14 ODR-VO will only be no longer mandatory from that date, as the ODR-VO will continue to apply until that date and Regulation (EU) 2024/3228 will not repeal Art. 14 ODR-VO earlier. In order to avoid annoying warnings, the reference should not be removed earlier.
Reform of the ADR Directive
In parallel with the abolition of the ODR platform, the ADR Directive (2013/11/EU) is undergoing a comprehensive revision. The aim is to make alternative dispute resolution more efficient and to strengthen consumer rights.
Since summer 2015, the ADR Directive obliges member states to set up alternative dispute resolution schemes for disputes between EU-based companies and EU-resident consumers in connection with service and sales contracts. Germany has transposed the Directive into national law, primarily in the Consumer Dispute Resolution Act (VSBG). Rather few industries are currently required to participate in alternative dispute resolution proceedings. However, all companies that enter into contracts with consumers must provide information on their website and in their general terms and conditions about their mandatory or voluntary participation in alternative dispute resolution proceedings.
Possible extension of the scope
- Geographical extension: The inclusion of traders outside the EU is under discussion.
- Material extension: Inclusion of digital products, pre-contractual claims and non-contractual disputes such as discrimination or unfair commercial practices.
Possible changes to procedures and trader obligations
In particular, the following changes are under discussion:
- Response deadlines should be introduced to encourage businesses to participate in consumer-initiated ADR proceedings. When an ADR entity submits a request, businesses would then be obliged to provide a statement within a specified period stating whether they wish to participate voluntarily in the proceedings.
- In any case, under the current proposals, the expiry of the deadline is of no consequence to the trader.
- Traders should be required to give written reasons for refusing or failing to comply with the decisions of the ADR body.
- The introduction of minimum qualifications for ADR body staff and the possibility of grouping mass proceedings.
- Consumers should be able to request a review of automated decisions by a natural person.
Existing rules
For the foreseeable future, the provisions of the Digital Services Act (DSA), in particular the dispute resolution provisions of Art. 21 DSA, will remain in force. The Consumer Dispute Resolution Act (VSBG) and the sectoral rules will also remain in force unchanged. This is because, in the event of a reform of the ADR Directive, the Member States will be granted a transposition period within which the provisions must be transposed into national law. It is only from this date that the new requirements will apply.
Conclusion
The abolition of the ODR platform requires specific measures to be implemented by 20 July 2025 at the latest: businesses should review and amend references to the platform in their terms and conditions, on their website and in other documents in good time.
While there is an immediate need for action in relation to the ODR platform, no action is required in respect of the reform plans for the ADR Directive (2013/11/EU). The planned changes, such as the possible obligation for individual sectors to participate in ADR, will only be transposed into national law after a longer implementation period.
