/

Alternative dispute resolution (ADR)

GLOSSARY

Regulation

Alternative dispute resolution (ADR)

Alternative dispute resolution (ADR)

Alternative dispute resolution (ADR)

THE SHORT VERSION

Alternative dispute resolution (ADR) is a way of settling a consumer dispute without going to court, through an independent third party such as a mediator, arbitrator or ombudsman. Since 6 April 2026, ADR for UK consumer contract disputes has been regulated under the Digital Markets, Competition and Consumers Act 2024.

Alternative dispute resolution (ADR) is a way of settling a consumer dispute without going to court, through an independent third party such as a mediator, arbitrator or ombudsman. Since 6 April 2026, ADR for UK consumer contract disputes has been regulated under the Digital Markets, Competition and Consumers Act 2024.

The Digital Markets, Competition and Consumers Act 2024 defines ADR as any method of securing or facilitating an out-of-court resolution of a consumer contract dispute by an independent third party acting in relation to both sides. Mediation, arbitration, early neutral evaluation and ombudsman schemes are examples.

The 2026 regime

Part 4, Chapter 4 of the Act (sections 291 to 310) came into force on 6 April 2026 under SI 2026/284. The ADR Regulations 2015 were revoked the same day.

  • ADR providers must be accredited or exempt, or work under arrangements made by a provider that is. The Chartered Trading Standards Institute accredits providers outside the regulated sectors.

  • When a trader tells a consumer the outcome of a complaint, it must also tell them about any ADR scheme it is obliged to use under legislation, the contract or other contractual arrangements.

  • Under transitional rules, ADR that starts on or before 7 January 2027 does not need an accredited provider. If a provider applies for accreditation before then, this lasts until its application is granted, refused or withdrawn. Regulations made on 16 September 2026 moved the date from 5 October 2026, and their explanatory note says the government proposes to let the CAA accredit ADR providers in aviation.

ADR in travel

  • Travel companies. ABTA members must allow disputes about an alleged breach of contract or negligence to go to ABTA’s arbitration scheme, which Hunt ADR supplies, within the scheme’s time and money limits. ABTA also offers free initial online ADR and voluntary mediation.

  • Airlines. The CAA lists two approved ADR providers for airline and airport complaints, AviationADR and CEDR. Most airlines and airports in the UK are signed up to one of them or to a provider abroad, and ADR is free for passengers. The CAA says it is reviewing its ADR policy in light of the Act. See flight delay and cancellation rights.