The European Union launched the Online Dispute Resolution (ODR) platform in 2016 to facilitate efficient online resolution of consumer complaints within the EU. However, the EU has now decided to discontinue this project, prompting questions about its effectiveness and future. This article explores the reasons behind the termination of the ODR platform, the timeline for its closure, and alternatives available for consumers and traders.
REASONS FOR DISCONTINUING THE ODR PLATFORM
The platform is shutting down due to its low usage and high maintenance costs. Only about 2% of complaints filed on the platform resulted in a positive reply from traders, amounting to just 200 cases per year across the EU. This statistic indicates the ODR platform has failed to meet expectations in facilitating effective consumer dispute resolution. Additionally, the high costs associated with maintaining the platform contributed to the Council of the European Union’s decision to discontinue it.
Timetable
- January 2025 – EU Regulation 2024/3228 on the discontinuation of the ODR came into effect.
- 20 March 2025 – By this date, it will no longer be possible to submit new complaints through the ODR platform.
- 20 July 2025 – The platform will be permanently shut down and all related data will be deleted.
CONSEQUENCES FOR TRADERS
Traders will be required to remove all references to the ODR platform from their websites, business terms and conditions, and other documents by 20 July 2025 at the latest. At that point, the platform will cease to operate, and the reference will no longer be mandatory. To avoid confusion, the link should not be removed before then. In practice, this change means that online shops, brick-and-mortar establishments, and others who have previously mentioned the ODR platform in their complaints or consumer promotions policies will have to update their terms and conditions and other documents to comply with the new rules, ideally by 20 July 2025.
OPTIONS FOR CONSUMERS
After the ODR platform closes, consumers will still have other ways to resolve disputes with traders. The main alternatives include filing complaints with national consumer protection authorities, such as the Czech Trade Inspection Authority in the Czech Republic, which provides out-of-court alternative dispute resolution (ADR). These bodies have the power to resolve disputes and provide advice. Consumers can also use alternative dispute resolution tools at the national level, like mediation or arbitration, to effectively resolve problems without going to court.
A REPLACEMENT FOR THE ODR PLATFORM
The European Commission intends to replace the ODR platform with a new digital interactive tool. This tool will guide consumers to alternative solutions for resolving disputes. The tool is to be part of the revisions to the Alternative Dispute Resolution (ADR) Directive aimed to make the dispute resolution process between consumers and traders more efficient.
UPCOMING CHANGES TO THE ADR
The European Union is undertaking a comprehensive review of the Alternative Dispute Resolution (ADR) Directive, concurrent with the closure of the ODR platform. The goal is to enhance the efficiency of dispute resolution and bolster consumer rights. The new system is expected to better serve the needs of consumers and traders by offering faster and more accessible options for resolving problems. The specific changes and implementation timeline will become clear in the coming months.
FURTHER DEVELOPMENT
With the closure of the ODR platform, a new era in consumer dispute resolution is dawning. Both traders and consumers should stay informed on the evolving landscape and prepare for the revised ADR Directive, which will introduce new tools and regulations.
HAVEL & PARTNERS stands ready to assist you with any questions or concerns regarding the termination of the ODR platform and its implications. Please do not hesitate to reach out – we are here to help you navigate this change.
