CTSI Celebrates Ten Years of Alternative Dispute Resolution

The latest from the CTSI for you;

The Chartered Trading Standards Institute (CTSI) celebrates ten years of Alternative Dispute Resolution (ADR) Regulations which provide a clear and fair way for consumers and businesses to resolve disputes through an independent third party, without the need for lengthy or expensive legal action.

Launched on the 9 July 2015, the ADR Regulations help to improve the relations between consumer and traders and encourage dispute resolution in a manner that avoids costly and time-consuming court cases. CTSI acts as a Competent Authority for ADR in the non-regulated sector and in those ten years, 42 organisations have joined the scheme – including, amongst others, The Motor Ombudsman, Royal Institution of Chartered Surveyors (RICS), the Association of British Travel Agents (ABTA), and Association of Chartered Accountants (ACCA).

ADR offers a number of benefits, including:

For Consumers:

• Faster resolution than going to court
• Lower cost than legal proceedings
• Less stressful and more informal process
• Accessible and easier to understand than legal systems
• Fair and impartial decisions from a neutral third party

For Businesses:

• Saves time and money by avoiding court
• Protects reputation by resolving complaints effectively
• Builds consumer trust through transparency and accountability
• Reduces legal risk and limits escalation of complaints
• Supports customer retention by showing a commitment to fairness

CTSI is also contracted to provide administrative support to the Approved Code Scheme (ACS) which was established, initially by Government, to give consumers greater confidence when they buy from members of the approved scheme and also raises the standards of trading of all businesses that operate under the relevant Approved Code for that sector.

Business operating under ACS offer Mandatory ADR, which is an added protection for consumers and businesses. ACS now protects almost £135bn of consumer transactions, a 62% year-on-year increase.

CASE STUDY

In a recent case, a consumer discovered a fault with her solar PV system – the panels had not generated anything in 7 months.  The Code member business inspected the system and found the panels were not connected properly. They corrected the problem and the system now works. The consumer was happy that they were fixed but sought compensation her for lost generation. The consumer was in vulnerable circumstances and did not have access to the internet.

The business made reasonable adjustments to help the consumer access their processes, including registering the complaint by phone. Through ADR mediation, the business helped the consumer understand her loss (how much the panels should have generated) and assisted the business to understand their obligations. They recognised what went wrong, offering £400 compensation. The ADR provider negotiated upwards, presenting evidence to show the consumer’s losses. The business then offered £500, which the consumer accepted. The consumer was very grateful to the ADR provider, noting her gratitude for how the trader and ADR process was adjusted for her.

Lesley Crompton, Head of Resolution Services at CTSI, said: “Alternative Dispute Resolution provides clear benefits for both consumers and businesses. ADR has helped many avoid or mitigate the significant costs and time delays that come with taking disputes to court and is vital for strengthening the relationship between consumers and businesses. I am proud of the work of CTSI and our ADR providers in relation to our responsibilities under the ADR Regulations as we celebrate a decade of achievements for consumer protection, and I look forward to its continuing growth over the years to come.”