Alternative and Online Dispute Resolution for Cross-Border Consumer Contracts: a Critical Evaluation of the European Legislature's Recent Efforts to Boost Competitiveness and Growth in the Internal Market

In May 2013, the European legislature enacted two measures relating to Alternative Dispute Resolution in consumer matters: the Directive on Alternative Dispute Resolution (ADR-Directive) and the Regulation on Online Dispute Resolution (ODR-Regulation). Both measures are intended to support the out-of-court settlement of consumer disputes with a view to ensure that consumers have straight-forward and low-cost access to justice. This article analyses whether and to what extent the ADR-Directive and the ODR-Regulation manage to achieve this aim in the field of cross-border consumer contracts. It sheds light on the European legislature's competence to regulate ADR, analyses the potential benefits of cross-border ADR, details the specific problems of cross-border ADR, and determines whether and to what extent the ADR-Directive and the ODR-Regulation resolve these problems. The article concludes that the ADR-Directive and the ODR-Regulation-while providing relief for some of the problems associated with cross-border ADR fail to resolve the two core problems of competence and language. Accordingly, it is unlikely that the ADR-Directive and the ODR-Regulation will significantly promote cross-border ADR and enhance cross-border consumer access to justice.