New dispute resolution rules for online retailers
Posted on in Business News , Cycles News
If you sell a service or product online you now need to ensure you are giving your customers information about the new Online Dispute Resolution (ODR) platform.
We recently reported on the newly introduced Consumer Rights Act & Alternative Dispute Resolution Regulations which came into effect in October 2015, affecting all retailers.
Under this new law, bricks and mortar retailers have various obligations including a requirement to tell your customers of the existence of an authorised alternative dispute resolution ("ADR") scheme. However, retailers do not have a legal requirement to sign up to an ADR scheme - such as the Retail Ombudsman. You only need to supply a customer with the information found here if the customer is unhappy with your efforts to resolve the issue.
However, new measures have also been introduced for online retailers.
Any retailer selling products or services to consumers online must now ensure a link to an ODR platform is displayed in a "prominent position" on their website.
The ODR is an interactive platform that enables consumers, retailers and alternative dispute resolution (ADR) providers to handle cross-border ecommerce disputes online instead of head to court to settle.
"Most consumers experiencing problems when buying online don't complain, as they believe the procedure is too long and that it won't be solved," explained Vera Jourová, Commissioner for Justice, Consumer and Gender Equality at the European Commission. "The Online Dispute Resolution platform is an innovative tool saving time and money for consumers and traders."
Online retailers are required to inform consumers of the existence of this platform, provide a contact email address and link to it and include ODR information in standard terms and conditions of sale and in any emails sent to customers that include a commercial offer.
In order to remain compliant, any retailer selling online must ensure the link below is displayed in your terms and conditions.
https://webgate.ec.europa.eu/odr/main/?event=main.home.show