THE MINISTER of Commerce and Industry Praxoulla Antoniadou yesterday welcomed the introduction of the Alternative Dispute Resolution law which would enable consumer disputes to be settled out of court, by an arbitration system. She was speaking at a seminar at which the new law, titled ‘Out of Court Settlement of Consumer Claims by Referral to Arbitration’ was presented.
The new law, the result of an EU directive, would offer a low-cost and speedy procedure for resolving consumer claims. These claims would be examined by an independent arbitrator who would issue a decision within a short period of time. It is a step in the right direction as it offers consumers an affordable and speedy way to claim compensation from suppliers.
The alternative of a costly court procedure that could last several years to settle is a deterrent for the vast majority of consumers. It would make no financial sense to go to court over a claim worth €100 when the legal fees could be 10 or 20 times that amount. It may even be difficult to find a lawyer to take on such a case.
Antoniadou believed the Alternative Dispute Resolution was a positive piece of legislation as it would encourage consumers to pursue their rights more forcefully. And not before time, given the blatant disregard for consumer rights shown by many shops and suppliers of services. But before consumers can become more assertive, they need to know their rights. Perhaps the consumer service of the commerce ministry could issue leaflets, listing these rights in plain language.
If the Alternative Dispute Resolution system works, it should also be extended to payment disputes of up to €5,000. This may require considerable study but if it can be done it would prove a blessing for our society. First, it would ease the congestion in the law courts which now have to deal with a plethora of small claims cases that clog up the system.
Second, and most important, it would tackle the big problem of non-payment which is a common practice. People often refuse to settle a debt, telling the creditor to take them to court, knowing that this would give them a minimum of another three years before they have to pay. If there was a payment disputes court, which dealt with these cases speedily, not only would it offer a valuable service, but fewer people would opt not to settle small debts.
The Alternative Dispute Resolution is an excellent idea which, if successful, could pave the way for arbitration in payment disputes as well.
