Alternative dispute resolution (ADR) is a process allowing complaints to be settled out of court with the assistance of an impartial dispute resolution body. Through ADR, consumers can settle a complaint against a trader for breach of contract, outside court procedures, assisted by impartial, neutral dispute mediation, arbitration or conciliation. Since 2013, the share of e commerce in the EU economy has increased significantly, up from 2 % to 4 % of EU gross domestic product (GDP), increasing the relevance of ADR for consumers. Each year, approximately 300 000 eligible disputes between consumers and traders are examined by ADR entities, with resolution rates between 17 % and 100 % across the Member States. On 17 October 2023, the European Commission adopted a proposal for a directive amending several directives pertaining to consumer rights and ADR. The proposal pursues three objectives, to: adapt the ADR legislative framework to digital markets; facilitate the use of ADR in cross-border disputes; and simplify ADR procedures. In the European Parliament, the file was referred to the Committee on the Internal Market and Consumer Protection (IMCO). On 26 June 2025, the co-legislators reached a political agreement. This agreement was approved by Coreper on 16 July 2025. Pending confirmation by the IMCO Committee, work is ongoing to finalise the text of the act before the Council closes its first reading. Fourth edition, based on an earlier edition by Clément Evroux. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2025 - EP Read more