You are currently viewing Alternative dispute resolution – Why should Businesses take the path of ADR?

This is the fourth article in a series that will be concentrated on alternative dispute resolution.

Its goal is to make you, the reader, whether you are a consumer or a business, acquainted with the ADR as well as to show you the importance and potential of digital technologies when it comes to alternative dispute resolution.

This article is going to show you all the benefits for the business, be it small or big, when it comes to ADR and the digital tools that support it.

You are a business that generally takes good care of its customers, and that values its reputation. But even though you usually find solutions to settle customer complaints, there is always a couple of ones that are not that easy to resolve and that then drag along and take too much time and money. If that is the case, ADR is perfect for you. It represents a possibility to find a solution by using the services of an impartial and objective third party, that has the legal knowledge to propose to you a solution that is not only a compromise between you and the consumer but also in compliance with the law, before going to court, and before the situation becomes messy. 

Do I have your attention? Then let’s talk details! 

It is online!

The ADR procedure can be 100% online, which means that you do not need to waste money on post stamps or for travelling. It also means that you can do the necessary from everywhere and whenever you want. 

No need for legal professionals on your end.

In case you are a small or medium-sized business that does not have its own legal team or legal professional, you do not need to waste your money and time on finding and hiring one to represent your interest or simply take care of the case. The ADR is, as already mentioned, impartial and objective and the solution proposal is done by legal professionals and in compliance with all the legal text, be it European or National. 

Building and protecting your reputation

Participating in ADR can also be a positive advertisement for you, showing that your business is willing and open to finding a solution, be it through communicating with your clients directly or by using a third party, such as an ADR Body to help you resolve issues. 

Another positive aspect of ADR is that it can potentially prevent negative online reviews. You must know how difficult it is to get rid of them, you cannot simply delete them. By using ADR, you can improve customer satisfaction and resolve issues in a shorter time than by going to court. 

To finish

You see now that “consumer protection law”, which is the main legal base for ADR in cases between businesses and consumers, is applicable, does not mean that the ADR is partial and on the consumer’s side only. It makes you believe it is beneficial for consumers, which is far from the truth. ADR gives a neutral legal assessment of the case. In an ADR procedure, the customer and the business are equal and have both their say.


Aleksandra Dubovac – M2 Cyberjustice – Promotion 2021/2022 

Sources: 

https://www.frankfurt-main.ihk.de/blueprint/servlet/resource/blob/5338212/84672247113f02b3e54d164858271c95/ihk-wirtschaftsforum-dezember-2017-data.pdf

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