A landmark moment for Consumer ADR
The Digital Markets, Competition and Consumers Act 2024 (the "DMCC Act") is best known for tackling the dominance of big tech and unfair trading practices. Tucked within its provisions, however, is an equally important reform: a wholesale modernisation of Alternative Dispute Resolution (ADR) in the consumer sector.
For years, Consumer ADR in the UK has operated in a fragmented system. Some sectors enjoy robust ombudsman schemes; others have relied on voluntary providers of variable quality. The DMCC Act sets out to change that by introducing greater consistency, transparency and accountability across the entire ADR market.
What is changing under the DMCC Act
1. Mandatory accreditation
For the first time, ADR providers handling consumer contract disputes must be accredited (or specifically exempt) to operate. Accreditation is being administered under criteria overseen by the Chartered Trading Standards Institute (CTSI) and the Office for Product Safety and Standards (OPSS), and requires providers to demonstrate:
- Independence and impartiality from the businesses they serve;
- Sufficient expertise in the sectors and disputes they handle;
- Accessible procedures for consumers;
- Transparent fees, timescales and outcomes.
Unaccredited providers can no longer offer ADR in consumer contract cases.
2. Stronger oversight and enforcement
Accreditation is not a one-off tick-box exercise. Regulators can audit providers, issue directions for improvement, revoke accreditation and, for serious breaches, impose financial penalties. The intent is clear: to eliminate substandard schemes that undermine consumer trust.
3. Improved consumer access
Businesses must now actively signpost consumers to an accredited ADR provider at key points in the complaints process, including when a complaint cannot be resolved internally. ADR rights can no longer be buried in the small print or quietly ignored.
4. Transparent outcome data
Accredited providers must publish clear performance data — including resolution rates, average time to resolve disputes and consumer satisfaction levels. This is designed to drive up standards and help consumers choose credible schemes.
What this means for consumers
Consumers gain a much clearer, more reliable route to redress:
- A single, recognisable standard for ADR quality;
- Certainty that a provider is genuinely independent;
- Faster, lower-cost resolution than court proceedings;
- Better information about what to expect at each stage.
What this means for traders
Businesses now face a statutory duty to engage meaningfully with ADR. That means more than adding a footnote to a website — it means embedding ADR into the complaints journey, training staff to recognise when to signpost, and preparing to participate constructively when a complaint is referred.
Done well, this is not a burden. Businesses that resolve complaints early protect their reputation, retain customers and avoid the far higher costs of litigation.
A step towards a fairer market
The DMCC Act formally recognises that ADR is not an afterthought — it is a cornerstone of a fair, modern consumer economy. Consumers deserve redress that is quick, affordable and trustworthy, and traders deserve a system that is consistent and proportionate.
ProMediate's Consumer ADR Scheme has been redesigned around these new requirements, so both consumers and participating traders can be confident that the process meets the highest current standards.
Next steps
- Consumers: read How to Make a Complaint or the Consumer Guidance page.
- Traders: see the Trader Guidance page for your obligations under the new regime.
- Read the full ADR Scheme Rules.