The current reform of alternative dispute resolution in the European Union leads to important changes in the information obligations of online traders. The so-called European Online Dispute Resolution Platform (ODR platform) and the underlying Regulation on Online Dispute Resolution for Consumer Disputes (so-called ODR Regulation ((EU) 524/2013)) will be abolished.
Since 2016, EU-traders engaging in online sales or service contracts with consumers or operate an online marketplace must provide a (clickable) link to the ODR platform on their website and, where applicable, in their general terms and conditions (Art. 14 ODR Regulation).
In practice, this is usually indicated in the legal notice or in the general terms and conditions as follows:
- Platform of the EU Commission for online dispute resolution: https://www.ec.europa.eu/consumers/odr
The most important consequences of the repeal of the ODR Regulation:
- The ODR platform will be discontinued on 20 July 2025 and all associated information will be deleted.
- New complaints can be submitted for the last time on 20 March 2025. The ODR platform can then be used until 19 July 2025 at the latest.
The reason for this is that the ODR platform was hardly used by consumers (not even 200 cases were forwarded to alternative dispute resolution bodies (ADR bodies) each year).
What do affected online traders have to do?
- Remove references to the ODR platform from the general terms and conditions or the website by 20 July 2025 (after this date there is a risk of warnings).
- Between 21 March 2025 and 19 July 2025, adjustments may be necessary: From 21 March 2025, it is no longer allowed to refer to the possibility for consumers to submit (new) complaints via the platform. After all, this was only possible until 20 March 2025. If such additional information is provided that is no longer factually correct, it must also be removed. The specific wording is crucial here, and ideally only the sentence mentioned above with a clickable link to the ODR platform should remain.
- If available: check any cease-and-desist declarations with a contractual penalty clause as well as interim injunctions or court judgments issued against the company, the subject of which is (also) the ODR platform.
- In the case of cease-and-desist declarations with a contractual penalty clause, it may be necessary to give notice of termination (in due form) by 20 July 2025. This applies, in particular, if no condition subsequent has been agreed in the event of a change in the legal situation with regard to the warned behavior. This is because the cease-and-desist declaration generally remains effective and can in many cases result in a contractual penalty.
- In the case of interim injunctions or judgments, on the other hand, a request to waive the assertion of rights or to waive enforcement may be appropriate. This is because the operative part of the judgment or order regularly remains enforceable.
Which obligations apply in accordance with the ADR Directive and VSBG and are not affected?
In addition to the abolition of the ODR Regulation, the Alternative Dispute Resolution Directive (ADR Directive (EU 2013/11)) is also being reformed. The ADR Directive has obliged member states to set up alternative dispute resolution bodies since 2015. As an EU directive, the ADR Directive is not directly applicable, but must be transposed into national law by the member states.
In Germany, this is primarily done through Sections 36 and 37 of the Consumer Dispute Resolution Act (VSBG). Since the beginning of 2017, companies with 10 or more employees and a branch in Germany that conclude contracts with consumers (B2C) and maintain a website/use terms and conditions have had to provide information on the extent to which they are willing or obliged to participate in dispute resolution proceedings before a consumer arbitration board.
Participation in alternative dispute resolution is largely voluntary. There is a legal obligation for certain sectors (e.g. pursuant to Section 111b EnWG , Section 57a LuftVG) or may result from an association’s articles of association or declaration of commitment.
For companies that neither wish to participate voluntarily in a dispute resolution procedure before a consumer arbitration board nor are legally obliged to do so, the corresponding notice, which must be included in the imprint or the general terms and conditions, is therefore as follows:
- „We are neither willing nor obliged to participate in a dispute resolution proceeding before a consumer arbitration board.“
Mandatory information of this kind must remain for the time being! Only when the reform plans become more concrete could further adjustments to the information obligations pursuant to the ADR Directive or VSBG be necessary (see below).
What does the reform project currently look like with regard to the ADR Directive?
The following proposals in particular are currently being discussed at European level:
- Extension of the scope of application beyond the European internal market
- Disputes concerning all breaches of EU consumer law are to be included in the scope of application (currently a (residential) domicile in the EU is required)
- Obligation for traders to respond within 20 working days to a request from an ADR entity (regardless of their willingness to participate in an ADR procedure).
It remains to be seen how the reform plans for the ADR Directive and its national implementation will actually take place. At European level, a trilogue procedure was initiated due to the differing positions of the European Parliament and the Council on the ADR Directive. The first trilogue meeting took place on 20 February 2025.
What consequences could the reform of the VSBG have for companies?
A reform of the VSBG is also currently being discussed at national level. In October 2024, the Federal Ministry of Justice (BMJ) published a draft bill (VSBG-E) (in German) on possible changes to the VSBG. In Sections 36 and 37 VSBG-E, this contains in particular a reduction in the information obligations for companies and a specification of the time of the information obligation in the event of a dispute. The VSBG-E primarily plans the following obligations for companies:
- General duty to provide information (Section 36 VSBG-E) only if entrepreneurs have (voluntarily) undertaken to participate in a dispute resolution procedure or are legally obliged to do so.
- Time of the obligation to provide information in the event of a dispute (Section 37 VSBG-E) is shifted forward to “after the dispute arises” (notification obligations must be fulfilled “immediately” if the consumer’s asserted claim is not or not completely fulfilled).
- In addition to the willingness or obligation to participate in an ADR procedure, the address and website address of the competent consumer arbitration body(ies) must also be provided in the event of such a willingness or obligation.
Conclusion and most important to-dos for affected companies:
- Check whether the information on the website – usually the legal notice and terms and conditions – is up to date and make any necessary adjustments.
- (Only) the obligations arising from the ODR Regulation will cease to apply to companies from 20.07.2025, i.e. it will then be necessary to remove the following notice from the website / from general terms and conditions / all documents:
Platform of the EU Commission for online dispute resolution: https://www.ec.europa.eu/consumers/odr
- Any declarations to cease and desist, interim injunctions and judgments should be reviewed.
- In contrast, the following notice must remain in place for the time being on the basis of the ADR Directive and the German VSBG (in a specifically applicable form):
We are neither willing nor obliged to participate in a dispute resolution proceeding before a consumer arbitration board.
Feel free to contact us if we can help you with this or if you have any questions.
