Reform set to make ADR mandatory for some sectors

The Government is consulting on Reforming Competition and Consumer Policy to give the Competition and Markets Authority more powers to tackle consumer harms.

In the joint announcement from the Business Secretary and Consumer Minister, it is confirmed that as part of these proposals, the Government is proposing to make it mandatory for businesses to take part in arbitration or mediation where disputes arise over a transaction. 

The consultation is seeking views on whether to make business participation mandatory in the motor vehicles sector (to include the supply of new and used vehicles and servicing and repair) and in the home improvements market (such as roofing, glazing, plumbing work, or the fitting of flooring, kitchens, or bathrooms. 

The BVRLA will be reviewing and responding to the full consultation once published. 

Andrea Coscelli, Chief Executive at the CMA, said: 

“Competitive, well-functioning markets are the cornerstone of a thriving economy, and they require constant vigilance to maintain. 

These proposals take forward many of the CMA’s suggestions for a swifter, stronger and more flexible competition and consumer protection regime, which will protect consumers and enable businesses to grow and thrive. We will respond to the consultation in due course.”  

The CMA has published its 2020/21 Annual Report showing its work over the year which includes saving consumers at least £2 billion.