Alternative dispute resolution for consumers (ADR) is one of the out-of-court ways of resolving disputes between consumers and traders. It is an out-of-court settlement of domestic and cross-border consumer disputes between traders based in the Republic of Croatia and consumers residing in the European Union, and the procedure is conducted before the Alternative Dispute Resolution (ADR) bodies, which are authorized to mediate or make non-binding or binding decision on the dispute. This allows the consumer to resolve his complaint from consumer contracts with a certain trader based in the Republic of Croatia or another EU member state, Norway, Iceland or Liechtenstein, with the help of one of the competent bodies for alternative dispute resolution.
The above applies to a consumer dispute whether it is a purchase of goods in the business premises of the trader or online shopping. Proceedings before the alternative dispute resolution bodies are a simple, fast and financially acceptable procedure, both for consumers and traders, so all of the above is a great advantage compared to the judicial settlement of such disputes.
ADR bodies
Each EU Member State has notified ADR bodies that meet certain criteria for resolving consumer disputes. There are two types of such ADR bodies in the Republic of Croatia: 1) mediation centers and 2) courts of honor. Mediation centers conduct proceedings on a voluntary basis in such a way that, with the help of expert mediators, the consumer and the trader can reach an amicable solution to their dispute. Courts of honor resolve disputes between the consumer and the trader arising from violations of commercial and business customs in the performance of the trader’s activities. Unlike voluntary proceedings before the mediation centers, proceedings before courts of honor are binding on traders, and if a violation of good business practices by an individual trader is determined, the prescribed sanctions shall be imposed on him.
On-line consumer dispute resolution
In the event of consumer disputes arising from the purchase of products or services via the Internet with a trader based in one of the EU Member States, it is also possible to resolve them through an interactive website – Online Dispute Resolution Platform (ODR Platform).
Through the ODR Platform, which is available in all official EU languages, including Croatian, the consumer can resolve all consumer disputes, regardless of whether it is a cross-border or domestic dispute, of course only if the consumer contract is concluded online.
With the click of a mouse, the consumer can file his complaint against the retailer, and in case the retailer agrees, they can resolve the dispute through one of ADR bodies.
It is important to point out that the ODR Platform does not resolve consumer complaints, but serves to forward the consumer complaint to the appropriate ADR body, which then resolves such a complaint, in case the consumer and the trader agree.
The European Consumer Centers Network has been designated as the contact point of the Online Dispute Resolution Platform, and its function is to provide support for resolving disputes related to complaints submitted through the Platform.
What is mediation in ADR
It is a voluntary and confidential procedure for assisted negotiation between the parties in a dispute, with the assistance of a third party – mediator, with the aim of reaching a settlement in the best interests of both parties.
Mediation participants
Participants in the mediation are the mediator, the parties and possibly their advisors (lawyers), and, if necessary, experts. Other persons of trust may join the parties in the mediation as support, and persons who have an interest in the dispute or have an influence on the parties in resolving it may also be involved.
Who is the mediator
A mediator is a person with special knowledge of the nature and structure of conflict, communication, negotiation and mediation skills, and knowledge of alternative dispute resolution. The parties may choose the mediator themselves.
How to start the mediation procedure
Mediation may be initiated by one party, with the acceptance of the other party, or it may be initiated by both parties by a joint proposal.
Which law governs ADR
Alternative settlement of domestic and cross-border disputes arising from sales contracts or service agreements between traders established in the Republic of Croatia and consumers residing in the European Union are regulated by the provisions of the Alternative Dispute Resolution Act.
The said Act transposed the Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) no. 2006/2004 and Directive 2009/22/EC (Alternative Dispute Resolution Directive) (OJ L 165/63 of 18 June 2013), into the legal order of the Republic of Croatia.
The law also regulates the implementation of Regulation (EU) no. 524/2013 of the European Parliament and of the Council of 21 May 2013 on the online dispute resolution for consumer disputes and amending Regulation (EC) no. 2006/2004 and Directive 2009/22/EC (Regulation on the online settlement of consumer disputes) (OJ L 165/1 of 18 June 2013; hereinafter: Regulation (EU) No 524/2013).
The purpose of this Act is to enable consumers to voluntarily initiate dispute resolution proceedings against traders before alternative dispute resolution bodies, which ensure independent, impartial, transparent, efficient, fast and cost-effective dispute resolution, in order to achieve a high level of consumer protection and proper functioning of the internal market.
Basic terms of alternative dispute resolution.
„Consumer“ is any natural person who enters into a legal transaction or operates in the market outside their trade, business, craft or professional activity. “Trader” means any person who enters into a legal transaction or acts on the market in the course of their trade, business, craft or professional activity, including a person acting in the name or on behalf of a trader.
Informing consumers by traders
Traders with a registered office in the Republic of Croatia who undertake to or are obliged by the relevant regulations to resolve consumer disputes through the ADR body, are obliged to inform consumers about this fact. The notice on the competent ADR body or bodies shall contain the postal address and the address of the website. These notices must be displayed in a way that is clear, understandable and easily accessible to the consumer, on the website and in the business premises of the trader, as well as in other ways provided by special regulations on consumer protection. If the dispute cannot be resolved through a written complaint sent by the consumer to the trader, in their response to the written complaint the trader is obliged to give the consumer the above information with a written statement on the possibility of initiating proceedings before the mentioned ADR bodies and about whether they will engage in proceedings before any of them.
Consumer help
The European Consumer Centres Network provides consumers with information on access to ADR bodies operating in other EU Member States, who are responsible for resolving cross-border disputes arising from a cross-border sales contract or service contract. The European Consumer Centres Network and each individual ADR body publish a list of dispute resolution bodies on their websites by providing a link to the European Commission’s web pages and, where possible, in paper or other durable medium on their premises.