Easy way for companies to comply with the new EU ADR directive
Glass and Glazing Federation
What is ADR, and what has been the legal obligation from 1st October 2015 for all businesses who sell to consumers?
ADR stands for Alternative Dispute Resolution, of which arbitration and ombudsman schemes are examples, and is being promoted by Government via the EU ADR Directive.
The Government believes that more and more consumers will look for a trader which offers ADR, in the event of an unresolved dispute between the consumer and the trader.
ADR is usually cheaper and quicker at resolving disputes than going to court. Whilst the Directive does not make the offering of ADR mandatory, there is the “business obligation” for all businesses who sell to consumers to comply with.
So, even if companies do not offer ADR, it is now the law that where firms reach the point where their complaint procedures have been exhausted and there are still disputes, they must legally provide the consumer with the following:-
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a statement that the company cannot settle the complaint with the consumer
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the name and website address of an ADR provider in the glazing sector that could deal with the complaint (e.g. TGAS), if the consumer wishes to use ADR
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whether the company are obliged or prepared to submit to an ADR procedure operated by that provider (in other words, the trader has to give the consumer details of an ADR provider but does not have to agree to use ADR)
Brian Smith, GGF Director of Home Improvement, commented: “After consultation and feedback from GGF Members and other companies in the industry, it was evident that an arbitration scheme was preferred to an ombudsman scheme. With an ombudsman scheme it is free and easy for a consumer to progress their complaint to an ombudsman and the decision is binding on the trader but not the consumer, so the consumer can just reject that ombudsman’s decision. However, with arbitration like TGAS the consumer has to pay £100 to progress their dispute to arbitration, and the decision is binding on both trader and consumer. TGAS will therefore weed out vexatious and frivolous claims from consumers. We have an excellent relationship with CEDR, and would emphasise that with TGAS the parties can always be certain that the dispute is being handled by a professional arbitrator who has been trained by the Chartered Institute of Arbitrators, which will ensure a fair and just decision in all cases”.
John Munton, Director of Dispute Resolution Services at CEDR, said: “Arbitration is the ideal dispute resolution method to provide both sides with an independent, swift and affordable answer when there is disagreement. CEDR is privileged to take on this important service ensuring, on the rare occasions that something does go wrong with a glazing service or product, that British consumers are treated fairly and that the reputation and good name of GGF Member companies and FENSA registered firms is retained”.
GGF Member companies are automatically entered into TGAS by belonging to the GGF Consumer Code of Practice. FENSA registered firms who wish to “opt in” are advised to contact FENSA direct using the email of tgas@fensa.org.uk.
