An out-of-court system is planned for shoppers.

By Ann Cahill, Europe Correspondent

Wednesday, November 30, 2011

CONSUMERS are losing over €22 billion a year buying faulty goods for which they cannot get replacements or their money refunded.

And going to court is not an option for about 20% of complainants who experience problems with goods purchased or services provided in the EU.

Furthermore, businesses are forking out about €3bn a year in cases brought before the courts, the European Commission noted.

In a bid to resolve disputes more efficiently and reasonably, the Commission is examining an alternative out-of-court settlement system.

The proposals cover cross-border purchases in the EU as well as goods bought by consumers shopping in their home countries. A cheap and easy online system is envisaged for those buying over the internet.

The alternative dispute resolution (ADR) system already exists in a number of countries, aimed at resolving disputes within 90 days.

The European Commission proposal ensures businesses will have to inform customers at the point of sale about the ADR entity in the event of a potential dispute over purchases.

The draft legislation also aims to create an EU-wide online platform that will provide consumers and businesses with a single outlet where they can refer their complaint. It will auto-matically send the complaint to the relevant national ADR entity and help ensure the problem is resolved within 30 days.

The idea is to achieve uniformity and any gaps that currently exist — not all EU countries have ADRs in place — will be plugged. It is envisaged all states will operate on the same basic quality criteria.

Meanwhile, internet consumers will be able to resolve their issues entirely online on a user-friendly website, accessible in all official languages of the EU and free of charge.

Consumer Policy Commissioner John Dalli said: "It is unacceptable that so many consumer problems are left unresolved because consumers have no real effective means of solving disputes with traders.

"This affects their pockets and hurts their confidence, and slows down European growth. These proposals should go a long way tow-ards resolving these issues."

Meanwhile, the National Consumer Agency has advised shoppers to be aware of their rights, especially at Christmas. The consumer body received over 4,600 complaints in January after last year’s shopping frenzy. Having launched a stronger shoppers’ guide this week, the up-to-date information on shoppers’ rights — such as returning faulty or unwanted presents and using gift vouchers— is available on nca.ie

This appeared in the printed version of the Irish Examiner Wednesday, November 30, 2011