Konsument Europa/ European Consumer Centre (ECC)

Sweden

ADR in cross-borderdisputes - practical examples

September, 2013

Konsument Europa/ECC Sweden

• Independent unit within the Swedish Consumer Agency SCA (CPC, NEB)

• Offers consumer advise in cross-border matters

• Part of the European Consumer Center Network, the ECC-Net

• Co-financed by the European Commission and the Swedish Consumer Agency 50/50

• Goal - inform European consumers so they can take full advantage of the opportunities offered by the Internal Market.

• Centres in 28 member states + Norway and Iceland.

• Aim - promote consumer confidence in cross-border transactions.

• Provides information and advice on consumer rights within the EU and feedback to the European Commission and other stakeholders based on practical experiences of case-handling.

• Assistance for the extrajudicial resolution of cross-border complaints and promotion of alternative dispute resolution and online dispute resolution. Regular exchanges with ADR-bodies, notified and non notified ADRs.

• Public information campaigns, reports, projects, surveys, publications and consultations.

• In 2012 the ECC-Net handled 72 067 contacts. 32 197 were complaints, 32% concerned the transport sector of which 21,6 % were air transport.

European Consumer Centres (ECC)

ECC - Handling of complaints usingADR/ODR schemes

Consumer

Consumer ECC- EU Trader ECC- EU Norway or Iceland Norway or Iceland

Trader EU, Norway or Iceland

Alternative Dispute Resolution (ADR) Online Dispute Resolution (ODR)National Enforcement Bodies (NEB) Consumer Protection Cooperation (CPC)

National Traders

The National Board for Consumer Disputes

• Public authority, ARN functions like a court. (1968) Soon also Online Dispute Resolution (ODR)

• Main task - to impartially try disputes between consumers and business operators free of charge.

• Petitions are filed only by the consumer in writing.• The Board's recommendations are not binding, but the

majority of companies follow them (2012:76%).• Provides for collective procedures.• Chairperson is a lawyer (court experience). • Consumer’s and trader’s representatives.

ARN – the procedure

• No mediation – the boards decides according to the legal rules.

• Value limitations: 500 SEK, 1 000 SEK, 2 000 SEK.• The parts has to prove their statements, no investigation

by the board.• The average duration is 5 to 6 months.• The decision is a recommendation.

Black list published twice a year in the Swedish consumer magazine Råd & Rön “naming and shaming”

http://www.radron.se/svarta-listan/?industry=5

Cross border issues

Since the decision is not binding and not enforceable, the board accepts cases, where it is probable that the trader will follow the recommendation.

Considerations to decide if a dispute can be handled by the ARN board:

• Place of business or establishment in Sweden• Marketing to Sweden• Place where the service has to be performed• Place of incident

Practical examples

An Estonian consumer ordered a car engine for 3 315 EUR from a company in Sweden. The engine was not delivered and the consumer turned to ECC Estonia, who shared the case with ECC Sweden.

ECC Sweden contacted the company, but the case could not be resolve through mediation. The case was sent to ARN and they recommended the company to reimburse 3 315 Euros to the consumer.

Practical examples

A Norwegian consumer bought a puppy from a Kennel in Sweden. After veterinary inspection, it turned out that the dog had Patella luxation on two legs. The consumer contacted the seller and complained, demanded a price reduction. The seller refused, so the consumer turned to ECC Norway.

ECC Sweden received the case and contacted the seller, but the seller was not willing to agree to a price reduction. The case was sent to ARN and they recommended the seller to give the consumer a price reduction by 865 Euros.

ADR cases regarding the volcanic ash cloud

By May 2011, the Swedish ADR had received 492 volcanic ash related cases, of which 309 have been handled.

Dismissed & rejected cases

Due to withdrawal 7 %

Statistics cross-border cases

2009 2010 2011 2012 2013 until

19 Sep

Total disputes 10 682 9 335 9 358 11 531 8 009

Complainant from other country

140 176 169 167 139

Trader from other country

285 489 484 629 478

Total cross-border

(C in contact with ECC SE) 425 665 653 796

(50) 617

(42)

Total cross-border in percentage

3,98 % 7,12 % 6,97 % 6,90 % 7,70%

Statistics – type of decisions

Decision 2011 2012 2013 until 19/9

Foreign cons

Foreign trader

Foreign cons

Foreign trader

Foreign cons

Foreign trader

In favor of consumer

54 170 43 173 5 32

Rejected 57 147 50 227 27 109

Solved without decision

28 74 31 103 16 78

Other (withdrawal etc.)

30 193 42 112 17 38

Not decided 1 14 74 221

Total disputes 169 484 167 629 139 478

Reasons why cases are not transferred to ADR

• No competent ADR• ADR with only regional competence• ADR requires that trader is a member of a

certain trade association• ADR requires that the trader accepts ADR-

handling on a case by case basis which the trader does not

• Consumer not interested due to fees at the ADR

Thank you for your attention!