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ADR Explained

ADR Accreditation and Consumer Contracts: What the DMCC Act Requires

Under the DMCC Act, only accredited providers can offer ADR in consumer contract disputes. Here are the accreditation criteria every scheme — and every trader choosing one — needs to understand.

9 May 2023 6 min read ADR Explained
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Why accreditation matters

The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) introduces a new statutory framework for ADR in consumer contract disputes. At its heart is a simple principle: only accredited providers can offer ADR in consumer contracts, and providers cannot charge consumers fees for using the process (with limited, narrowly defined exceptions).

This gives consumers confidence that the scheme they are using has been independently assessed against a rigorous set of criteria.

The accreditation criteria in plain English

The Act sets out a series of criteria an accredited provider must meet. In summary:

1. Information for consumers

The provider must give consumers accessible, plain-English information about:

  • The types of ADR it offers and the possible outcomes of each;
  • The kinds of disputes it deals with;
  • The procedure followed from referral through to outcome;
  • Any fees or costs payable by either party.

2. Readiness to carry out ADR

The provider must not unreasonably refuse to deal with a dispute properly referred to it.

3. Expertise

The provider must have sufficient expertise, experience and training for the types of dispute it handles. Case handlers and ADR officials must be competent in the relevant law and sector.

4. Accessible facilities

There must be accessible ways for consumers and traders to refer and participate in ADR — including reasonable adjustments for those with additional needs.

5. Independence and impartiality

Case handlers must be genuinely independent of the parties, free from conflicts of interest and able to reach an impartial view on the merits of a dispute.

6. Timeliness

Disputes must be dealt with within reasonable, published timescales — typically culminating in a proposed outcome within 90 days of the case being complete. This is the wider regulatory framework; ProMediate's own operational target is to conclude Consumer ADR disputes within 28 days of receiving the complete complaint file.

7. Fairness and transparency

Procedures must be fair to both sides, with each party given the opportunity to present their case and respond to the other's evidence.

What this means for traders choosing a provider

If your business is required — or chooses — to offer ADR to consumers, you must ensure your chosen provider is:

  • Currently accredited under the DMCC Act framework (or exempt);
  • Suitably experienced in your sector;
  • Clearly signposted in your terms, on your website and in your complaint responses.

Using an unaccredited provider will not satisfy your obligations under the Act.

What this means for consumers

You can be confident that a Consumer ADR scheme operated by an accredited provider such as ProMediate has been independently assessed on:

  • The competence of its people;
  • The fairness of its procedures;
  • The accessibility of its service;
  • The transparency of its fees and outcomes.

If a trader signposts you to an ADR scheme, you can ask whether that scheme is accredited under the DMCC Act. If it is not, you can raise this with Trading Standards.

How ProMediate meets the criteria

ProMediate's Consumer ADR Scheme has been designed and independently assessed against the accreditation criteria. Full details are set out in the ADR Scheme Rules, and our Our ADR Process page walks through each stage from referral to outcome.

Related reading

This article has been rewritten and updated for the ProMediate Consumer ADR Knowledge Centre. Adapted from the original at promediate.co.uk. Legal accuracy has been reviewed as at 9 May 2023. Nothing in this article constitutes legal advice.