This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how Alternative Dispute Resolution works for online purchases in the UK, including the ADR process, legal framework, consumer rights, and how to resolve disputes without going to court.
Disputes arising from online purchases are increasingly common, particularly where goods are faulty, not delivered, or not as described. While court action remains an option, most consumer disputes in England and Wales are resolved through Alternative Dispute Resolution (ADR).
ADR provides a structured, independent process for resolving disputes without formal litigation. It is designed to be quicker, less expensive, and more accessible than court proceedings. This article explains how ADR works in the context of online purchases, the legal framework supporting it, and the practical steps consumers can take to use it effectively.
What Is Alternative Dispute Resolution (ADR)?
ADR refers to methods of resolving disputes between consumers and traders without going to court.
It typically involves an independent third party who helps both sides reach a resolution or makes a decision based on the evidence.
Common forms of ADR include:
- Mediation – a neutral party helps both sides reach agreement
- Arbitration – a third party makes a decision, often binding
- Adjudication or ombudsman decisions – a formal ruling based on the facts
ADR is widely used for disputes involving online purchases and is encouraged by UK law as an alternative to litigation.
The Legal Framework for ADR in the UK
The ADR Regulations 2015
The key legislation is the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015.
These regulations:
- Require businesses to inform consumers about ADR options if a dispute cannot be resolved internally
- Establish standards for ADR providers, including independence and impartiality
- Ensure ADR bodies are approved by a recognised authority
Businesses are not always required to participate in ADR, but they must tell consumers whether they are willing to do so.
Recent Developments
Recent reforms under the Digital Markets, Competition and Consumers Act 2024 are strengthening ADR oversight and accreditation, with a greater focus on consistency and accountability across schemes.
When ADR Is Used in Online Purchase Disputes
ADR is typically used after initial attempts to resolve the issue directly with the trader have failed.
The usual sequence is:
- Consumer raises a complaint with the retailer
- The retailer investigates and responds
- If unresolved, ADR may be offered or requested
Consumers are generally expected to exhaust the trader's internal complaints process first before using ADR.
Step-by-Step: How ADR Works for Online Purchases
Step 1: Attempt Direct Resolution
Before ADR begins, the consumer must:
- Contact the trader
- Explain the issue clearly
- Request a remedy (refund, repair, replacement, or compensation)
ADR providers will usually reject complaints that have not gone through this stage.
Step 2: Identify an Appropriate ADR Provider
If the dispute is unresolved, the trader must:
- Provide the name and website of a certified ADR body
- Indicate whether they will engage with that ADR scheme
Consumers can also identify ADR providers through:
- Trade associations
- Approved ADR bodies lists
- Consumer advice services
Step 3: Submit a Complaint to the ADR Body
The consumer submits:
- Details of the purchase
- Evidence (receipts, correspondence, photos)
- A clear explanation of the dispute
Some ADR providers allow fully online submissions, making the process suitable for digital transactions.
Step 4: Initial Assessment
The ADR provider will:
- Check whether the complaint falls within its jurisdiction
- Confirm that the trader participates in the scheme
If accepted, the case proceeds to investigation.
Step 5: Investigation and Resolution Process
The ADR body reviews:
- Evidence from both parties
- Contract terms
- Relevant consumer law
Depending on the type of ADR:
- A mediator may facilitate negotiation
- An adjudicator may issue a decision
- An arbitrator may make a binding ruling
ADR aims to resolve disputes fairly and efficiently, often within a set timeframe.
Step 6: Outcome and Decision
The outcome may include:
- A refund or partial refund
- Replacement goods
- Compensation
- A rejection of the claim
In many schemes:
- The decision is binding on the trader if the consumer accepts it
- The consumer may still pursue court action if dissatisfied
ADR outcomes are typically enforceable in practice, particularly where traders are members of regulated schemes.
Online Dispute Resolution (ODR) and Digital ADR
ADR for online purchases often takes place through digital platforms.
Key features include:
- Online complaint forms
- Electronic evidence submission
- Remote decision-making
Historically, the EU Online Dispute Resolution platform supported cross-border disputes. While UK consumers no longer access it directly post-Brexit, ADR bodies remain available for both domestic and international disputes.
Costs and Accessibility
ADR is generally:
- Free or low cost for consumers
- Faster than court proceedings
- Less formal and easier to navigate
Recent legal provisions also aim to ensure that ADR providers do not charge excessive fees and maintain transparency in pricing.
Advantages of ADR for Online Purchase Disputes
Key Benefits
- Avoids court proceedings
- Faster resolution times
- Lower costs
- Independent and impartial review
- Accessible for individuals without legal expertise
ADR is particularly suitable for lower-value online disputes where court action may not be proportionate.
Limitations and Risks
Potential Drawbacks
- Traders may refuse to participate (in non-mandatory sectors)
- Decisions may not always be binding on both parties
- Limited remedies compared to courts in some cases
- Delays can still occur depending on the scheme
Consumers should consider whether ADR is appropriate based on the value and complexity of the claim.
Time Limits and Deadlines
ADR schemes often impose their own deadlines, such as:
- Requiring complaints within a certain period after the trader's final response
- Time limits for submitting evidence
Separately, court claims are generally subject to a six-year limitation period under the Limitation Act 1980.
Acting promptly is essential to preserve all available options.
Relationship Between ADR and Court Proceedings
ADR does not remove the right to go to court.
Key points:
- ADR is usually a preliminary or alternative step
- Courts may expect parties to consider ADR before litigation
- Refusal to engage in ADR can sometimes affect cost decisions in court
If ADR fails, a consumer can still issue a claim in the county court, typically through the small claims track.
Practical Guidance for Consumers
When considering ADR for an online purchase dispute:
- Keep detailed records of the transaction
- Attempt resolution with the trader first
- Ask for ADR details if the complaint is unresolved
- Submit clear and organised evidence
- Monitor deadlines carefully
Using ADR effectively often depends on preparation and clarity of the claim.
Common Questions from our Readers
Is ADR compulsory for online retailers?
Not always. Some sectors require it, but many retailers participate voluntarily.
Can I still go to court after ADR?
Yes. ADR does not prevent court action if you are dissatisfied with the outcome.
How long does ADR take?
Timescales vary, but ADR is generally faster than court proceedings.
Is ADR legally binding?
This depends on the scheme. Some decisions are binding on the trader if accepted by the consumer.
Final Thoughts
Alternative Dispute Resolution plays a central role in resolving online purchase disputes in England and Wales. It offers a structured, independent, and accessible alternative to court proceedings, allowing consumers and traders to resolve issues efficiently.
By understanding how ADR works-starting with internal complaints, progressing through independent review, and leading to a resolution-consumers can make informed decisions about how to pursue refunds, compensation, or other remedies.
ADR is not always mandatory, but it is often the most practical and proportionate route for resolving disputes arising from online transactions.
