Administrative aspects of alternative consumer dispute resolution in the European Union (EU), Slovenia and Croatia

Abstract

The consumer field is widespread and oft en encompasses different legal fields on a single market, especially when it comes to the field of consumer protection. In fact, the consumer mostly remains a weaker party in resolving consumer disputes, especially in administrative proceedings. Traditional court proceedings do not always offer the most cost-appropriate way of resolving consumer disputes, because the damage with legal costs is disproportionate, especially in Small Claims (20 EUR). In theory, Alternative Dispute Resolution (hereinaft er: ADR) is considered more flexible, faster and cheaper for disputes between consumers and businesses. Insofar, Consumer ADR (hereinaft er: CADR) is seen as a useful tool that helps consumers realize their right of access to justice. It is argued that CADR systems provide valuable information on the needs of disputants, while preserving confidentiality, increasing consumer satisfaction, equality and grater trust. While CADR is praised in theory as an added value, in practice it still remains unrecognizable and therefore is seen as an ineffective formalism in some EU countries. It seems that consumers and businesses lack awareness of the CADR schemes and their benefits, which have effects on the efficient use of CADR in different public and private institutions.