Why the rules are changing
Alternative Dispute Resolution (ADR) has become an essential route for consumers to resolve disputes without the cost and delay of going to court. But the previous framework — the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 — allowed considerable variation in quality between providers.
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) replaces that framework with a more rigorous regime designed to strengthen consistency, consumer protection and market fairness.
Stricter ADR standards
Under the new rules:
- Accreditation is mandatory. Only accredited (or specifically exempt) ADR providers may handle consumer contract disputes. This raises the baseline of professionalism and reliability across the sector.
- Procedures and fees are standardised. The Act drives greater consistency across providers, ensuring fair costs and transparent processes so consumers know what to expect before they begin.
- Exemptions are clarified. Certain well-established sectoral schemes remain exempt, in recognition of their existing regulatory frameworks and specialist expertise.
New duties on traders
A central feature of the reforms is a clearer duty on traders to notify consumers about their ADR arrangements. Traders must:
- Make information about their ADR provider easily accessible — on their website, in terms and conditions and in complaint correspondence;
- Signpost consumers to ADR at the point their internal complaints process concludes without resolution;
- Communicate ADR options clearly and in plain language, not buried in small print.
Clear signposting helps consumers make informed decisions and reinforces trust in the dispute resolution process.
Enforcement and implementation
Unlike other consumer protection measures in the DMCC Act, the new ADR provisions are not included in Schedule 16, which means they do not fall within the direct enforcement powers of the Competition and Markets Authority (CMA). Enforcement instead sits with the accreditation body and, ultimately, with the Secretary of State's regulatory powers over accredited providers.
The Government has confirmed that these ADR rules take effect after April 2025, giving businesses and providers a transition period to bring their procedures, documentation and staff training into line.
What businesses should do now
- Review your complaints process to ensure it clearly signposts to your accredited ADR provider.
- Check your provider's accreditation status — using an unaccredited provider will not satisfy the new rules.
- Update your website, terms and complaint templates to reflect the DMCC signposting duties.
- Train customer-facing staff on when and how to refer a consumer to ADR.
Further learning
CTSI has published free training webinars supporting the DMCC Act 2024 changes for ADR providers and traders. ProMediate's Trader Guidance page sets out our own scheme rules, referral process and best-practice checklists.
Conclusion
The DMCC Act marks a decisive step in improving Consumer ADR. Stricter accreditation, procedural consistency and clearer trader duties combine to give consumers access to higher-quality dispute resolution — and give businesses a predictable, proportionate framework in which to resolve complaints before they escalate.