Alternative Dispute Resolution for Consumer Disputes (Extension of Time Limits for Legal Proceedings) (Amendment etc.) (EU Exit) Regulations 2020

Baroness Bowles of Berkhamsted Excerpts

Wednesday 16th September 2020 Grand Committee

[Baroness Bowles of Berkhamsted (LD) [V]]

My Lords, the UK had a tradition of alternative dispute resolution before the EU ADR directive. As has been indicated by the noble Lord, Lord Kirkhope, UK MEPs played a significant part in achieving the passage of the EU legislation. It was not just an extension of the applicable territory that the UK gained through the directive. As I understood it, there was an extension of timing possibilities for factions so that, if ADR was unsuccessful, the matter could still be taken to the courts. That was a useful addition to the law and I am glad that it is being kept, although it appears it is now being reduced, so that it is applicable to UK residents only, as a consequence of Brexit.

UK-based ADR organisations will also no longer be required to act in cross-border disputes, and the UK competent authorities that approve ADR providers will no longer be required to report to the European Commission on the state of ADR activity. I note that result with sadness, for both UK consumers who will—as indicated by the noble Lord, Lord Kirkhope—lose some access, and ADR organisations, which would appear to be losing work. The reciprocal effect will happen, so EU residents will no longer be able to exercise cross-border ADR rights in the UK. I wonder whether this will promote a change in online trading patterns and possibly the reintroduction of liable inter- mediaries and higher costs, or influence trade to go elsewhere, with less cross-border trade.

Given that statistics have been collected in the past, it would be interesting to know how many ADR claims UK residents have made relating to the remaining EU member states and, conversely, what volume of ADR cases EU residents have pursued in the UK.

Online dispute resolution is also being lost and is not really covered by this instrument. That platform is run by the Commission and I understand that, at the end of the implementation period, access to it will be lost. It is disappointing that there appears to be no UK substitute. I have read that the dispute resolution provisions tend not to have been as widely displayed as they should in the UK, but that is not really an excuse to abandon them, never to be returned. Therefore, can the Minister say whether this is a long-term abandonment or if there are plans for replacement?

Coronavirus has increased the amount of online trading and much of that trend is likely to be permanent, being just an acceleration of a trend that was already under way. It makes sense, in a modern digital world, to have a modern digital way for consumer redress mechanisms. Similarly, as I asked before about statistics, does the Minister have any numbers for the volume of online disputes relating to UK consumers?