Alternative dispute resolution

What it means

Alternative dispute resolution, or ADR, is an out-of-court route by which a consumer can settle a dispute with a trader when they cannot agree. Typical cases are a rejected complaint claim, money not refunded after withdrawal from a contract or an incorrect bill for a service.

The dispute is handled by a body on the list kept by the Ministry of Economy, such as the Slovak Trade Inspection for ordinary goods and services, or specialised bodies for energy, telecoms or financial services. The procedure is free for the consumer or costs a token fee.

The outcome is not a judgment. The ADR body assesses the dispute and proposes a solution or issues an opinion that generally does not bind the trader. If the parties still disagree, the consumer can go to court. ADR differs from mediation in that someone also assesses the dispute on its merits.

How it works in practice

Every trader selling to consumers must state in its terms and conditions and on its website which ADR body the consumer can turn to. The Slovak Trade Inspection checks this in online store inspections, and missing information is a common reason for fines.

The consumer must first ask the trader to put things right. If the trader rejects the request or does not reply within 30 days, the consumer can file an ADR application. The trader must cooperate with the ADR body and provide documents such as the complaint record or correspondence with the customer.

For a company it makes sense to treat ADR as a cheap way to end a dispute. Court proceedings over a complaint worth a few hundred euros cost more in fees than the goods themselves. We recommend a clear procedure in the complaints policy and considering a settlement in borderline cases.

What to watch out for

Traders often forget to answer a consumer’s request to put things right. Silence for 30 days counts as rejection and opens the way to ADR. Every such request should be logged and answered in writing, even when the company refuses it.

ADR applies only to disputes with consumers. Disputes between businesses cannot be resolved this way; for those there are the courts, arbitration under an arbitration clause or voluntary mediation. The Slovak Trade Inspection will not help you in a dispute with a supplier.