ADR Directive – delay to coming into force date for business information requirements

The Government has issued an update on implementation of the ADR Directive, the deadline for which is 9 July 2015.  The final regulations are now published at https://www.legislation.gov.uk/uksi/2015/1392/pdfs/uksi_20151392_en.pdf.  The business information obligation has been postponed and will now come into force on 1 October 2015.  These provisions oblige all businesses which cannot resolve the complaint with the consumer and who have exhausted their own internal, complaints-handling process, to give the consumer details of a certified ADR provider and indicate whether or not they intend to use them to try and settle the dispute.

 

The Government sees several benefits in delaying the business information requirements until 01 October:

 

  • Bringing them into force on 1 October will align with the common commencement date which is also the same day that comprehensive changes to consumer law are being introduced by the Consumer Rights Act:  This will make it clearer for consumers and traders as all the main changes to consumer law will all come into force on the same day.
  • Competent authorities will have more time to certify ADR providers: Whilst on track to certify most ADR providers seeking certification by 9th July, there may be some who are not certified on time so the delay will mean certified ADR providers will not have a competitive advantage over those still waiting.
  • There will be more time for business to familiarise themselves with their obligations.

Comprehensive guidance on the regulations will be available for both business and consumers and will be published shortly on the Chartered Trading Standards Institute and Consumers Direct websites respectively.