Alternative Consumer Dispute Resolution

by:MICHAEL KYPRIANOU & CO LLC

The House of Representatives, for the purpose of alignment with the European Union Act, Directive 2013/11 / EU, voted on the Alternative Dispute Resolution Law of 2017.

This law will apply to out-of-court settlements of domestic and cross-border disputes concerning contractual obligations arising from sales or service contracts between a trader operating in the Republic and a consumer residing in the Republic or a Member State of the European Union.

This law will not apply, inter alia, in the following cases:

  • proceedings in consumer complaints investigated through the operational systems of the trader
  • in differences between traders- in direct negotiations between a consumer and a trader
  • in proceedings of trader-to-consumer.

According to the law, the ADR entity will offer dispute resolution services and propose or impose a solution or bring the parties together, with a view to finding an amicable solution between them.

From the date that this law is brought into force, the Law on the Out-of-Court Settlement of Consumer Claims with their Referral to Arbitration (2015) is abolished.