CELEX: 52011PC0794
Language: en
Date: 2011-11-29
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on online dispute resolution for consumer disputes (Regulation on consumer ODR)

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		52011PC0794
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on online dispute resolution for consumer disputes (Regulation on consumer ODR) /* COM/2011/0794 final - 2011/0374 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM

1.                      
Context of the Proposal

The present proposal, together with the
proposal for a Directive on alternative dispute resolution for consumer
disputes ("Directive on consumer ADR"), is to be seen in the context
of efforts to improve the functioning of the retail Internal Market, in
particular by enhancing consumer redress linked to cross-border e-commerce
transactions.
At present, the offer of ADR schemes to resolve
consumer disputes related to e-commerce transactions is scattered and incomplete.
In addition, while half the existing ADR schemes offer consumers the
possibility of submitting their complaint online, very few offer consumers the
possibility of conducting the entire procedure online (via online dispute
resolution – ODR)[1].
Handling the entire process online would produce time savings and ease
communication between the parties.
With the development of e-commerce, the scope and size of
markets in which businesses and consumers operate have grown significantly and extend
beyond national borders. Consumers as well as traders, however, perceive it as
risky to engage in cross-border e-commerce transactions because they fear that
relevant disputes might not easily be resolved due to the virtual character of the
transaction.
The lack of effective redress for
complaints resulting from cross-border online transactions has adverse
consequences both for consumers and businesses.
Consumers lose out by not being able to shop online across borders; they thus miss
the opportunity of comparing the costs of products in the wider EU market and of
buying them where they are less expensive. Businesses, in
particular small and medium-sized enterprises, are deterred from acquiring the
administrative capacity needed to deal with disputes with consumers residing in
another Member State. This hinders the development of the digital Internal
Market.
The Europe 2020 flagship initiative
"Digital Agenda for Europe"[2]
announced an EU strategy to improve ADR systems, indicating that the Commission
will "propose an EU-wide online redress tool for e-commerce"
to boost consumer and business confidence in the digital market. The 2011
Single Market Act[3]
included amongst its key priorities the establishment of "simple, fast
and affordable out-of-court settlement procedures for consumers and protect
relations between businesses and their customers. This action will also include
an electronic commerce dimension".
In view of the problems identified, the
proposed Regulation aims at establishing an EU-wide ODR system that will facilitate
the resolution of disputes related to the cross-border online sale of goods or
provision of services between a trader and a consumer.

2.                      
Results of Consultations with the interested
Parties and Impact Assessment
2.1.                
Collection of expertise and consultation of
interested parties

Several studies conducted by the Commission
on consumer ADR addressed issues linked to online dispute resolution tools.
These include the 2009 “Study on the use of Alternative Dispute resolution
in the European Union” carrying out an in-depth analysis of existing ADR
schemes and their functioning in all Member States, the study on consumer
redress in the EU[4],
the "Assessment of the compliance costs including administrative
costs/burdens on businesses linked to the use of Alternative Dispute Resolution
(ADR)" (2011) and the study on "Cross-border ADR in the
European Union" (2011).
The public consultation on the use of ADR launched in January 2011 also
addressed issues related to ODR and how best to ensure consumer redress in
cross-border e-commerce transactions[5]. A large measure of support emerged on the
need to improve ODR tools, in particular for e-commerce transactions, where
there is an increasing number of complaints especially for low-value cases. In particular, it was underlined the need to tackle the language
issue and to provide adequate information to the parties on the process and its
outcome. A vast majority of respondents drew attention to the need to build on
positive experiences that exist in specific sectors.
The debate held at the summit on
"Alternative Dispute Resolution for Internal Market and consumers"
organised jointly by the Commission services and the European Parliament in
March 2011, showed general support for the development of ODR tools for
consumer disputes through EU action in order to provide
clarity on the conditions and to ensure high quality ADR schemes for e-commerce
in all sectors. The workshop on
"ADR: how to make it work better?", organised within the European
Consumer Summit of April 2011[6],
dealt with issues linked to online dispute resolution.
Finally, the European Data Protection
Supervisor (EDPS) was also consulted.

2.2.                
Impact assessment

The Commission has carried out a detailed
impact assessment (IA), analysing a range of policy options for both "ADR
coverage, information and quality" and "ODR for cross-border e-commerce transactions".
The IA
concluded that only a combination of two instruments on ADR and ODR can ensure
access to impartial, transparent and effective means to resolve consumer
disputes linked to cross-border e-commerce transactions out-of-court. In
particular, a Regulation will establish an EU-wide ODR system, which can
effectively deal with disputes related to cross-border e-commerce transactions
on the basis of the full coverage of quality ADR schemes to be achieved in
accordance with the Directive on consumer ADR.

3.                      
Legal Elements of the Proposal
3.1.                
The functioning of the EU-wide online dispute
resolution system
3.1.1.          
Establishment of the European online dispute
resolution System

The present proposal aims at establishing a
European online dispute resolution platform ("ODR platform"). This
ODR platform takes the form of an interactive website which offers a single
point of entry to consumers and traders who seek to resolve out-of-court a dispute
which has arisen from a cross-border e-commerce transaction. The platform can
be accessed in all official languages of the EU and its use is free of charge. ADR schemes established in the
Member States which have been notified to the Commission in accordance with the
"Directive on consumer ADR" will be registered electronically with
the ODR platform.
Consumers and traders will be able to submit
their complaints through an electronic complaint form which will be available on
the platform’s website in all official languages of the EU. The platform will
check if a complaint can be processed and seek the agreement of the parties to transmit
it to the ADR scheme which is competent to deal with the dispute. The competent
ADR scheme will seek the resolution of the dispute in accordance with its own
rules of procedure within 30 days from the date of receipt of the complaint.
The ADR scheme will have to notify to the platform some data in relation to the
development of the dispute (date when the complaint was notified to the parties;
date when the dispute was resolved; outcome of the dispute). 
Under the proposal, a network of online
dispute resolution facilitators ("ODR facilitators' network") will be
established which will consist of one contact point for online dispute
resolution in each Member State. The ODR facilitators' network will provide
support to the resolution of disputes submitted via the ODR platform.

3.1.2.          
Information on the
EU-wide ODR system 

The present proposal requires traders
established within the EU that engage in cross-border e-commerce to inform
consumers about the ODR platform. This information shall be made easily,
directly, prominently and permanently accessible on the traders' websites as
well as when the consumer submit a complaint to the trader.

3.1.3.          
Monitoring

An annual activity report will be drawn up
on the operation of the platform. The compliance by ADR schemes with the
obligations set out in this Regulation will be monitored by the competent
authorities to be established in the Member States in accordance with the
Directive on consumer ADR. Every three years the Commission will report to the
European Parliament and the Council on the application of the Regulation.

3.1.4.          
Data Protection rules

The data entered in the ODR platform by the
parties and the ADR schemes will be stored in a database and will be subject to
the relevant legislation on data protection.

3.2.                
Subsidiarity principle

The proposal
is based on Article 114 of the Treaty on the Functioning of the European Union.
The
development of an EU-wide ODR system for cross-border online disputes, built on
existing ADR schemes in the Member States and respecting their respective rules
of procedure, will strengthen confidence in the retail digital Internal Market
and will open up new opportunities for businesses.
Despite the currently low level of
cross-border e-commerce transactions, there is a rapidly expanding digital
retail market within the Member States. Thus, ensuring simple, low-cost and
effective means of out-of-court redress is needed to strengthen consumers’ and
traders’ confidence in online transactions across borders.
Action at EU level is necessary to
establish an EU-wide ODR platform which is an essential tool for promoting
e-commerce. It is also imperative to provide European consumers with the same
level of protection and promote competitive practices amongst businesses, thus
increasing the exchange of products and services online and across borders.

3.3.                
Proportionality

The proposal complies with the
proportionality principle for the following reasons:
The proposal intends to put in place the
most effective means of achieving the pursued objective at the lowest
comparative costs. Instead of creating a completely new structure at EU level,
the intended regulatory approach is based on existing national ADR schemes
which comply with the requirements set out in relevant Union legislation.
The proposed Regulation will thus ensure full
coverage in quality ADR services for cross-border online disputes while the
implementation costs will be limited to what the proposal adds to the existing
ADR structures at national level. 
The proposed rules have been subject to a
proportionality test and intensive consultation to ensure appropriate and
proportionate regulation.

4.                      
Budgetary Implication 

This action is part of the Consumer
programme 2014-2020.[7]
The budgetary impact will be addressed by redeployment for the years 2012 and
2013. The financial appropriations for implementing this proposal from 2012 to
2020 will amount to EUR 4,586 million in current prices. The human resources
required will be met by staff from the Directorate General who are already
assigned to the management of the action and have been redeployed within the
Directorate General, together if necessary with any additional allocation which
may be granted to the managing Directorate General under the annual allocation
procedure and in the light of budgetary constraints. A financial statement is
attached to the proposal. 
2011/0374 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on online dispute resolution for consumer
disputes (Regulation on consumer ODR)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[8],

After consulting the European Data Protection
Supervisor,
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)              
Article 169(1) and point (a) of Article 169(2)
of the Treaty on the Functioning of the European Union (TFEU) provide that the
Union is to contribute to the attainment of a high level of consumer protection
through the measures adopted pursuant to Article 114 thereof. Article 38 of the
Charter of Fundamental Rights of the European Union provides that Union
policies shall ensure a high level of consumer protection.
(2)              
In accordance with Article 26(2) TFEU, the
Internal Market is to comprise an area without internal frontiers in which the
free movement of goods and services is ensured. In order for consumers to have
confidence in and benefit from the digital dimension of the Internal Market, it
is necessary that they have access to easy and low-cost ways of resolving
disputes which arise from the sale of goods or the supply of services online.
This is particularly important when consumers shop cross-border.
(3)              
In its Single Market Act[9], the Commission has identified
legislation on alternative dispute resolution which includes an electronic
commerce dimension as one of the twelve levers to boost growth and strengthen
confidence in the Single Market. 
(4)              
The European Council has invited the Parliament
and the Council to adopt, by the end of 2012, a first set of priority measures
to bring a new impetus to the Single Market.[10]

(5)              
The Internal Market is a reality for consumers
in their daily lives, when they travel, buy and make payments. Consumers are
key players in the Internal Market and should therefore be at its heart. The
digital dimension of the Internal Market is becoming vital for both consumers
and traders. Consumers increasingly make purchases over the internet and an
increasing number of traders sell online. Consumers and traders should feel
confident in carrying out transactions in a digital environment.
(6)              
Being able to seek easy and low-cost dispute
resolution can boost consumers' and traders' confidence in the digital market.
Consumers and traders, however, still face barriers to finding out-of-court
solutions in particular to their disputes arising from a cross-border online
transaction. Thus, such disputes currently are often left unresolved.
(7)              
Online dispute resolution offers a simple and
low-cost out-of-court solution to disputes arising from cross-border online
transactions. However, there is currently a lack of mechanisms that allow
consumers and traders to resolve such disputes via electronic means. This leads
to consumer detriment, acts as a barrier to cross-border online transactions,
creates an uneven playing field for traders and thus hampers the development of
electronic commerce.
(8)              
This Regulation should apply to the out-of-court
resolution of contractual disputes between consumers and traders that arise
from the online sale of goods or provision of services by traders across
borders. It should not apply to disputes between consumers and traders that arise
from the online sale of goods or provision of services if at least one of them
is not established or resident in a Member State of the Union at the time when
the consumer orders such goods or services or the trader and the consumer are
established or resident in the same Member State.
(9)              
This Regulation should be without prejudice to
Directive 2008/52/EC of the European Parliament and of the Council of 21 May
2008 on certain aspects of mediation in civil and commercial matters[11], Regulation (EC) No 44/2001 of
the Council of 22 December 2000 on jurisdiction and the recognition and enforcement
of judgments in civil and commercial matters[12],
Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11
July 2007 on the law applicable to non-contractual obligations (“Rome II”)[13] and Regulation (EC) No
593/2008 of the European Parliament and of the Council of 17 June 2008 on the
law applicable to contractual obligations (“Rome I”)[14].
(10)          
The definition of “consumer” should cover
natural persons who are acting outside their trade, business, craft or
profession. However, if the contract is concluded for purposes partly within
and partly outside the person’s trade (dual purpose contracts) and the trade
purpose is so limited as not to be predominant in the overall context of the
supply, that person should also be considered as a consumer.
(11)          
The definition of 'online sale of goods or
provision of services' should cover a transaction for the online sale of goods
or provision of services where the trader, or the trader’s intermediary, has
offered goods or services through a website or by other electronic means and
the consumer has ordered those goods or services on that website or by other
electronic means. This should also cover cases where the consumer has accessed
the website or other information society service through a mobile electronic
device such as a mobile telephone.
(12)          
This Regulation should not apply to disputes
between consumers and traders that arise from the cross-border sale of goods or
provision of services offline. This Regulation should not apply to disputes
between traders.
(13)          
This Regulation should be seen in conjunction
with Directive …./…/EU [Office of Publications insert reference number] of
the European Parliament and of the Council of [Office of Publications insert
date of adoption] on alternative dispute resolution for consumer disputes
(Directive on consumer ADR)[15]
which requires Member States to ensure that all disputes between consumers and
traders resident or established in the Union which arise from the sale of goods
or provisions of services can be submitted to an alternative dispute resolution
entity.
(14)          
This Regulation aims at creating an online
dispute resolution ('ODR') platform at European level. The ODR platform should take
the form of an interactive website offering a single point of entry to
consumers and traders seeking to resolve disputes out-of-court which have
arisen from a cross-border e-commerce transaction. It should allow consumers
and traders to submit complaints by filling in an electronic complaint form
available in all official languages of the Union and transmit complaints to an alternative
dispute resolution ('ADR') entity competent to deal with the dispute concerned.
The platform should offer to ADR entities and the parties the possibility of
conducting the dispute resolution procedure via the platform. 
(15)          
An ODR system at European level should build on
existing ADR entities in the Member States and respect Member States' legal
traditions. ADR entities to which a complaint has been transmitted via the ODR platform
should therefore apply their own rules of procedure, including rules on cost.
However, this Regulation intends to establish some common rules applicable to
those procedures that will safeguard their effectiveness. This should include
rules ensuring that such dispute resolution is accomplished expeditiously.
(16)          
Ensuring that all ADR entities notified to the
Commission in accordance with Article 17(2) of Directive …./…/EU [= Directive
on consumer ADR] Office of Publications insert reference number] are
linked electronically to the European ODR platform should allow the full
coverage in out-of-court redress online for cross-border disputes arising from
the online sale of goods or provision of services.
(17)          
This Regulation does not prevent the functioning
of any existing online dispute resolution entity operating within the Union. It
should not prevent ADR entities from dealing with cross-border online disputes
which have been submitted to them by a means other than the ODR platform.
(18)          
A network of online dispute resolution
facilitators should provide support to the resolution of disputes relating to
complaints submitted via the ODR platform. That network should be composed of
contact points for ODR in the Member States which host online dispute
resolution facilitators. 
(19)          
The right to an effective remedy and the right
to a fair trial are fundamental rights guaranteed in Article 47 of the Charter
of Fundamental Rights of the European Union. Online dispute resolution
procedures cannot be designed to replace court procedures and should not
deprive consumers or traders of their rights to seek redress before the courts.
Nothing in this Regulation should, therefore, prevent parties from exercising
their right of access to the judicial system. 
(20)          
The processing of information under this
Regulation should be subject to strict guarantees of confidentiality and should
comply with the rules on the protection of personal data laid down in Directive
95/46/EC of the European Parliament and of the Council of 24 October 1995 on
the protection of individuals with regard to the processing of personal data
and on the free movement of such data[16]
and in Regulation (EC) 45/2001 of the European Parliament and of the Council of
18 December 2000 on the protection of individuals with regard to the processing
of personal data by the Community institutions and bodies and on the free
movement of such data[17].
These rules should apply to the processing of personal data carried out under
this Regulation by the various actors of the platform, whether they act alone
or jointly with other actors of the platform.
(21)          
Data subjects should be informed about the
processing of their personal data in the ODR platform, and their rights with
regard to that processing, by means of a comprehensive privacy notice to be
made publicly available by the Commission and explaining, in a clear and simple
language, the processing operations performed under the responsibility of the
various actors of the platform, in accordance with Articles 11 and 12 of
Regulation (EC) No 45/2001 and with national legislation adopted pursuant to Articles
10 and 11 of Directive 95/46/EC.
(22)          
Traders should inform consumers on their
websites about the ODR platform and provide an electronic link to its homepage.
They should also provide such information when a consumer submits a complaint
to the trader, a consumer complaint handling system operated by the trader or a
company ombudsman. This obligation should be without prejudice to Article 10(1)-(3)
of Directive .…/…/EU [Office of Publications insert reference number] concerning
the information of consumers by traders about the ADR procedures by which those
traders are covered and about whether or not they commit to use alternative
dispute resolution procedures to resolve disputes with consumers. Furthermore,
this obligation should be without prejudice to Articles 6(1)(t) and 8 of
Directive 2011/83/EU of the European Parliament and of the Council of 25
October 2011 on consumer rights[18].
Article 6(1)(t) of Directive 2011/83/EU stipulates for consumer contracts
concluded at a distance or off premises that the trader has to inform the
consumer about the possibility of having recourse to an out-of-court complaint
and redress mechanism to which the trader is subject, and the methods for
having access to it, before the consumer is bound by the contract. 
(23)          
In order to supplement or amend certain
non-essential elements of this Regulation, the power to adopt acts in
accordance with Article 290 TFEU should be delegated to the Commission in
respect of the type of information which a complainant is to provide in the
electronic complaint form made available on the ODR platform. It is of
particular importance that the Commission carries out appropriate consultations
during its preparatory work, including at expert level. The Commission, when
preparing and drawing up delegated acts, should ensure a simultaneous, timely
and appropriate transmission of relevant documents to the European Parliament
and Council.
(24)          
In order to ensure uniform conditions for the
implementation of this Regulation implementing powers should be conferred on
the Commission in respect of the functioning of the ODR platform, the
modalities for the submission of a complaint and co-operation within the ODR
facilitators' network. Those powers should be exercised in accordance with
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning
mechanisms for control by Member States of the Commission's exercise of
implementing powers. The advisory procedure should be used for the adoption of
implementing acts relating to the electronic complaint form given its purely
technical nature. The examination procedure should be used for the adoption of
the rules concerning the modalities of cooperation between the ODR facilitators
of the network of online dispute resolution facilitators.
(25)          
Since the objectives of this Regulation, namely
to set up a European online dispute resolution platform for cross-border online
disputes governed by common rules, because of the scale and effects of the action,
cannot be sufficiently achieved by the Member States and therefore be better
achieved at Union level, the Union may adopt measures in accordance with the
principle of subsidiarity as set out in Article 5 of the Treaty on European
Union. In accordance with the principle of proportionality, as set out in that
Article, this Regulation does not go beyond what is necessary in order to
achieve that objective.
(26)          
This regulation respects fundamental rights and
observes the principles recognised in particular by the Charter of Fundamental
Rights of the European Union and specifically Articles 7, 8, 38 and 47 thereof,
HAVE ADOPTED THIS REGULATION:
CHAPTER I
General provisions
Article 1
Subject matter
The purpose of this Regulation is to
contribute to the functioning of the internal market, and in particular its
digital dimension, and to the achievement of a high level of consumer
protection by providing a platform facilitating the impartial, transparent,
effective and fair out-of-court resolution of disputes between consumers and
traders online.
Article 2
Scope
This Regulation shall apply to the
out-of-court resolution of contractual disputes arising from the cross-border
online sale of goods or provision of services between consumers and traders
through the intervention of an alternative dispute resolution entity complying
with Directive [Office of Publications please insert number of Directive
of the European Parliament and of the Council on alternative dispute
resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and
Directive 2009/22/EC (Directive on consumer ADR)] and involving the use of a
European online dispute resolution platform.
Article 3
Relationship with other Union legislation
This Regulation is without prejudice to
Directive 2008/52/EC, Regulation (EC) No 44/2001, Regulation (EC) No 864/2007
and Regulation (EC) No 593/2008.
Article 4
Definitions
For the purposes of this Regulation:
(a)                   
"consumer" means any natural person
who is acting for purposes which are outside his trade, business, craft or
profession;
(b)                   
"trader" means any natural persons or
any legal person, irrespective of whether privately or publicly owned, who is
acting, including through any person acting in his name or on his behalf, for
purposes relating to his trade, business, craft or profession;
(c)                   
"online sale of goods or provision of
services" means a transaction for the sale of goods or provision of
services where the trader, or the trader's intermediary, has offered goods or
services on a website or by other electronic means and the consumer has ordered
such goods or services on that website or by other electronic means;
(d)                   
"electronic means" means electronic
equipment for the processing (including digital compression) and storage of
data which is entirely transmitted, conveyed and received by wire, by radio, by
optical means or by other electromagnetic means.
The following shall not be regarded as services
provided by electronic means:
–              
off-line services;
–              
services having material content even though
provided via electronic devices such as automatic cash or ticket dispensing
machines (banknotes, rail tickets), access to road networks, car parks,
charging for use, even if there are electronic devices at the entrance or exit
controlling access and/or ensuring correct payment is made;
–              
services which are not provided via electronic
processing/inventory systems such as voice telephony services, telefax or telex
services, services provided via voice telephony or fax; telephone or telefax
consultation of a doctor; telephone or telefax consultation of a lawyer;
telephone or telefax direct marketing.
(e)                   
"cross-border online sale of goods or
provision of services" means an online sale of goods or provision of
services where, at the time the consumer orders such goods or services, the
consumer is resident in a Member State other than the Member State where the
trader is established;
(f)                     
a trader is "established"
–              
if the trader is a natural person, where he has
his place of business;
–              
if the trader is a company or other legal person
or association of natural or legal persons, where it has its statutory seat,
central administration or principal place of business or, if the trader's offer
is made or if the goods or services ordered are to be delivered out of the
operations of a branch, agency or other establishment, where that branch,
agency or other establishment is situated;
(g)                   
"alternative dispute resolution
procedure" (hereinafter "ADR procedure") means a procedure for
the out-of-court resolution of a dispute through the intervention of a dispute
resolution entity which proposes or imposes a solution or brings the parties
together with the aim of facilitating an amicable solution;
Procedures before dispute resolution entities
where the natural persons in charge of dispute resolution are employed
exclusively by the trader, procedures before consumer complaint handling
systems operated by the trader, direct negotiation between the consumer and the
trader, whether represented or not, and attempts made by a judge to settle a
dispute in the course of a judicial proceeding concerning that dispute shall
not be regarded as ADR procedures;
(h)                   
"alternative dispute resolution entity",
(hereinafter "ADR entity") means an entity covered by Article 4(e) of
Directive [Office of Publications insert number of Directive of
the European Parliament and of the Council on alternative dispute resolution
for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive
2009/22/EC (Directive on consumer ADR)] which has been communicated to the
Commission in accordance with Article 17(2) of that Directive;
(i)                     
"complainant party" means the consumer
or the trader that has submitted a complaint via the European online dispute
resolution platform;
(j)                     
"respondent party" means the consumer
or the trader against whom a complaint has been submitted via the European online
dispute resolution platform;
(k)                   
"personal data" means any information
relating to an identified or identifiable natural person ('data subject'); an
identifiable person is one who can be identified, directly or indirectly, in
particular by reference to an identification number or to one or more factors
specific to his or her physical, physiological, mental, economic, cultural or
social identity.
CHAPTER II
European online dispute resolution platform
Article 5
Establishment of the European online dispute resolution platform
1.                      
The Commission shall establish a European online
dispute resolution platform, (hereinafter ‘ODR platform’).
2.                      
The ODR platform shall be an interactive website
which can be accessed electronically and free of charge in all official
languages of the Union. The ODR platform shall be a single point of entry to
consumers and traders seeking the out-of-court resolution of disputes covered
by this Regulation. 
3.                      
The ODR platform shall have the following
functions:
(a)         
providing an electronic complaint form which can
be filled in by the complainant party; 
(b)         
proposing, based on the information contained in
the electronic complaint form,  one or more competent ADR entities to the
parties and providing information on their fees, if applicable, the language or
languages in which the procedure will be conducted, the approximate length of
the procedures or informing the complainant party that based on the information
submitted, no competent ADR entity could be identified;
(c)         
referring complaints to the ADR entity which the
parties have agreed to use;
(d)         
enabling the parties and the ADR entity to conduct
the dispute resolution procedure online;
(e)         
providing an electronic form by means of which
ADR entities shall transmit the information referred to in Article 9(c);
(f)           
providing a feedback system which allows the
parties to express their views on the functioning of the ODR platform and on
the ADR entity which has handled their dispute.
(g)         
publishing information on ADR entities notified
to the Commission in accordance with Article 17(2) of Directive …./…/EU [Office
of Publications please insert number of Directive of the European
Parliament and of the Council on alternative dispute resolution for consumer
disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC
(Directive on consumer ADR)] which deal with disputes covered by this
Regulation;
(h)         
providing general information on alternative
dispute resolution as a means of out-of-court dispute settlement;
(i)           
making accessible statistics on the outcome of
the disputes handled by the ADR entities to which complaints have been transmitted
via the ODR platform.
4.                      
Alternative dispute resolution entities which
have been notified to the Commission in accordance with Article 17(2) of
Directive …./…/EU [Office of Publications please insert number of Directive
of the European Parliament and of the Council on alternative dispute
resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive
2009/22/EC (Directive on consumer ADR)] and which, according to the elements
necessary to establish their competence, as notified pursuant to Article 16(1)(g)
of Directive …./…/EU [Office of Publications please insert number of Directive
of the European Parliament and of the Council on alternative dispute resolution
for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive
2009/22/EC (Directive on consumer ADR)], which, based on the information
contained in the electronic complaint form referred to in point (a) of
paragraph 3, are competent to deal with disputes covered by this Regulation,
shall register electronically with the ODR platform. 
5.                      
The Commission shall be responsible for the ODR
platform as regards its development, its operation, its maintenance and as
regards data security.
6.                      
The Commission shall adopt measures concerning
the modalities for the exercise of the functions provided for in paragraph 3
through implementing acts. Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 15(3).
Article 6
Network of online dispute resolution facilitators
1.                      
Each Member State shall designate one ODR contact
point and communicate its name and contact details to the Commission. Member
States may confer responsibility for the ODR contact points on their centres of
the European Consumer Centre Network, on consumer associations or on any other
body. Each ODR contact point shall host at least two online dispute resolution
facilitators (hereinafter 'ODR facilitators').. 
2.                      
The ODR facilitators shall provide support to
the resolution of disputes relating to complaints submitted via the platform by
fulfilling the following functions:
(a)         
if necessary, facilitating communication between
the parties and the competent ADR entity;
(b)         
informing consumers of other means of redress
when a dispute cannot be resolved via the platform, for example when the trader
fails to agree to the use of ADR;
(c)         
submitting, based on the practical experience gained
from the performance of their functions, an annual activity report to the Commission
and to the Member States;
(d)         
informing the parties of the advantages and
disadvantages of the procedures applied by the proposed ADR entities.
3.                      
The Commission shall establish a network of
online dispute resolution facilitators (hereinafter the 'ODR facilitators'
network') which shall enable cooperation between ODR facilitators and
contribute to the performance of the functions set out in  paragraph 2.
4.                      
The Commission shall at least once every year
convene a meeting of members of the ODR facilitators' network in order to
permit an exchange of best practice, and a discussion of any recurring problems
encountered in the operation of the ODR platform.
5.                      
The Commission shall adopt the rules concerning
the modalities of the cooperation between the ODR facilitators through
implementing acts. Those implementing acts shall be adopted in accordance with
the examination procedure referred to in Article 15(3).
Article 7
Submission of a complaint
1.                      
In order to submit a complaint to the ODR
platform the complainant party shall fill in the electronic complaint form
which shall be available on the platform's website. The complainant party may
attach to the complaint form any documents in electronic form in support of his
complaint.
2.                      
The information to be submitted by the complainant
party shall be sufficient to determine the competent ADR entity. This
information is described in the Annex.
3.                      
The ODR platform shall provide the parties with
information about the ADR entity or entities identified by the ODR platform as
competent; if more than one option is available, the ODR facilitators of the
Member States concerned shall provide the parties with details of the various
entities so identified and advise them of the advantages and disadvantages of
the procedures applied by each of these entities in order to enable the parties
to make an informed choice.
4.                      
The Commission shall be empowered to adopt
delegated acts in accordance with Article 16 to adapt the information listed in
the Annex, taking into account the criteria by which the ADR entities notified
to the Commission in accordance with Article 17(2) of Directive …./…/EU [Office
of Publications please insert number of Directive of the European
Parliament and of the Council on alternative dispute resolution for consumer
disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC
(Directive on consumer ADR)] that deal with disputes covered by this Regulation
define their respective scopes of application.
5.                      
The Commission shall lay down the modalities of
the electronic complaint form by means of implementing acts. Those implementing
acts shall be adopted in accordance with the advisory procedure referred to in
Article 15(2).
6.                      
Only data which are accurate, relevant and not
excessive in relation to the purposes for which they are collected shall be
processed through the electronic complaint form and its attachments.
Article 8
Processing and transmission of a complaint 
1.                      
A complaint submitted to the platform shall be
processed if the complaint form is fully completed.
2.                      
Upon receipt of a fully completed complaint
form, the ODR platform shall communicate to the complainant party, in the
language of the complaint, and send by e-mail to the respondent party, in the
language of the contract, the following:
(a)         
 the information that the parties have to agree
on one competent ADR entity in order for the complaint to be transmitted to it;

(b)         
 the information that in the event that the
parties fail to agree on one competent ADR entity or that no competent ADR
entity is identified, the complaint shall not be processed further;
(c)         
a list of all competent ADR entities, if any are
identified;
(d)         
the name and contact details of the  ODR contact
point in the place of residence for the consumer and in the place of
establishment for the trader, as well as a brief description of the functions
referred to in Article 6(2)(a), (b) and (d).
(e)         
an invitation to the consumer to select one or
more ADR entities from the list provided, specifying that there is no
obligation on the consumer to make such a selection;
(f)           
an invitation to the trader to select one or
more ADR entities from the list provided, in the event that none of those
entities correspond to an entity the trader committed to use in accordance with
Article 10(1) of Directive …./…/EU[Office of Publications please insert
number of Directive of the European Parliament and of the Council on
alternative dispute resolution for consumer disputes and amending Directive
2009/22/EC (Directive on consumer ADR)];
(g)         
the information that in the event that the
consumer chooses an ADR entity the trader has committed to use in accordance
with Article 10(1) of Directive …./…/EU[Office of Publications please insert
number of Directive of the European Parliament and of the Council on
alternative dispute resolution for consumer disputes and amending Directive
2009/22/EC (Directive on consumer ADR)], the platform shall automatically
transmit the complaint to that ADR entity.
3.                      
The communication referred to in paragraph 2
shall include a description of the following characteristics of each entity:
(a)         
their fees, if applicable;
(b)         
 the language or languages in which the
procedure will be conducted; 
(c)         
the approximate length of the procedure; 
(d)         
the need for the physical presence of the
parties or of their representatives, if applicable; 
(e)         
the binding or non-binding nature of the outcome
of the procedure.
4.                      
Where the parties fail to reply to the platform
or to agree on one competent ADR entity, the complaint shall not be processed
further. The consumer shall be informed of the possibility of contacting an ODR
facilitator for information on other means of redress.
5.                      
Where the choice of the consumer corresponds to an
ADR entity the trader has committed to use in accordance with Article 10(1) of
Directive …./…/EU[Office of Publications please insert number of Directive
of the European Parliament and of the Council on alternative dispute resolution
for consumer disputes and amending Directive 2009/22/EC (Directive on consumer
ADR)] or where the parties choose the same ADR entity in their replies, the
platform shall automatically transmit the complaint to that ADR entity.
6.                      
In the event that the parties agree on more than
one ADR entity, the consumer shall be requested to select one of the ADR
entities agreed upon. The platform shall automatically transmit the complaint
to that ADR entity.
Article 9
Resolution of the dispute 
ADR entities to which a complaint has been transmitted
in accordance with Article 8 shall:
(a)         
without delay notify the parties of the dispute
and inform them of their rules of procedure and of the fees applicable to the
resolution of the dispute concerned;
(b)         
if, following the notification of the dispute to
the parties, the parties agree to institute proceedings before the entity, accomplish
the conclusion of the dispute resolution procedure within 30 days from when the
proceedings have been instituted. In the case of complex disputes, the ADR entity
may extend this time limit;
(c)         
without delay transmit the following information
to the ODR platform:
(i)      date of receipt and subject-matter of
the dispute;
(ii)      date of notification of the dispute
to the parties;
(iii)     date of conclusion and result of the
procedure.
Article 10
Database
The Commission shall take the necessary
measures to establish and maintain an electronic database in which it shall
store the information processed in accordance with Article 5(3) and Article
9(c).
Article 11
Processing of personal data
1.                      
Access to information, including personal data,
related to a dispute and stored in the database referred to in Article 10 shall
be granted, for the purposes referred to in Article 9, only to the ADR entity
to which the dispute was transmitted in accordance with Article 8. Access to
the same information shall be granted also to ODR facilitators for the purposes
referred to in Article 6(3).
2.                      
The Commission shall have access to information processed
in accordance with Article 9 for the purposes of monitoring the use and functioning of the ODR platform and
drawing up the reports referred to in Article 17. It shall process personal
data of the users of the platform in so far as it is necessary for the
operation and maintenance of the platform, including for the purposes of
monitoring the use of the platform by ADR entities and ODR facilitators. 
3.                      
Personal data related to a dispute shall be kept
in the database referred to in paragraph 1 only for the time necessary to
achieve the purposes for which they were collected and to ensure that data
subjects are able to access their personal data in order to exercise their
rights, and shall be automatically deleted, at the latest, after 6 months
following the date of conclusion of the dispute which has been transmitted to
the ODR platform in accordance with Article 9(c)(iii). The above-mentioned
retention period shall also apply to personal data kept in national files by
the ADR entity or the ODR facilitator which dealt with the dispute concerned,
except if the rules of procedure applied by the ADR entity or any specific
provisions of national law provide for a longer retention period.
4.                      
Each ODR facilitator and each ADR entity shall
be regarded as a controller, in accordance with Article 2(d) of Directive
95/46/EC, with respect to their own data processing activities under this
Regulation and shall be responsible to ensure that these activities comply with
data protection rules laid down in national legislation adopted pursuant to
Directive 95/46/EC. In relation to its responsibilities under this Regulation
and the processing of personal data involved therein, the Commission shall be
regarded as a controller in accordance with Article 2(d) of Regulation (EC) No
45/2001.
Article 12
Data confidentiality and security
1.                      
ODR facilitators and ADR entities shall be
subject to rules of professional secrecy or other equivalent duties of
confidentiality laid down in national legislation.
2.                      
The Commission shall take the appropriate
technical and organisational measures to ensure the security of information
processed under this Regulation, including appropriate data access control, a
security plan and a security incident management, in accordance with Article 22
of Regulation (EC) No 45/2001.
Article 13
Consumer information
1.                      
Traders established within the Union engaging in
the cross-border online sale of goods or provision of services shall inform
consumers about the ODR platform and about their e-mail address. This
information shall be made easily, directly, prominently and permanently
accessible on the traders' websites and, if the offer is made by e-mail or
another textual message transmitted by electronic means, in that message. It
shall include an electronic link to the ODR platform's homepage. Traders shall
also inform consumers about the ODR platform when the consumer submits a
complaint to the trader, a consumer complaint handling system operated by the
trader or to a company ombudsman.
2.                      
The provisions in paragraph 1 are without
prejudice to the provisions in Article 10 of Directive …./…/EU [Office of
Publications please insert number of Directive of the European
Parliament and of the Council on alternative dispute resolution for consumer
disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC
(Directive on consumer ADR)] concerning the information of consumers by traders
about the ADR procedures by which those traders are covered and about whether
or not those traders commit to use alternative dispute resolution procedures to
resolve disputes with consumers.
3.                      
The provisions in paragraph 1 are without
prejudice to the provisions in Articles 6 and 8 of Directive 2011/83/EU
concerning consumer information for distance and off-premises contracts.
Article 14
Monitoring
The compliance by ADR entities with the
obligations set in this Regulation shall be monitored by the competent
authorities which have been established by Member States in accordance with
Article 15(1) of Directive …./…/EU [Office of Publications please insert
number of Directive of the European Parliament and of the Council on
alternative dispute resolution for consumer disputes and amending Regulation
(EC) No 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR)] .
CHAPTER III
Final provisions
Article 15
Implementing acts
1.                      
The Commission shall be assisted by a committee. That committee shall be a committee within
the meaning of Regulation (EU) No 182/2011.
2.                      
Where reference is made to this paragraph,
Article 4 of Regulation (EU) No 182/2011 shall apply. 
3.                      
Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply. Where the opinion of the committee is to be obtained by written
procedure, that procedure shall be terminated without result when, within the
time-limit for delivery of the opinion, the chair of the committee so decides
or a simple majority of committee members so request.
Article 16
Exercise of the delegation
1.                      
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.
2.                      
The delegation of power referred to in Article
7(4) shall be conferred for an indeterminate period of time from the [Office
of Publications insert same date as in Art. 18(1) = date of entry into force of
this Regulation].
3.                      
The delegation of powers referred to in Article 7(4)
may be revoked at any time by the European Parliament or by the Council. A
decision of revocation shall put an end to the delegation of the power
specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European
Union or at a later date specified therein. It shall not affect the
validity of any delegated acts already in force.
4.                      
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.
5.                      
A delegated act adopted pursuant to Article 7(4)
shall enter into force only if no objection has been expressed either by the
European Parliament or the Council within a period of 2 months of notification
of that act to the European Parliament and the Council or if, before the expiry of that
period, the European Parliament and
the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative
of the European Parliament or the Council.
Article 17
Reports
Every three years and for the first time no
later than five years after the entry into force of this Regulation the
Commission shall submit to the European Parliament and the Council a report on
the application of this Regulation. The report shall be accompanied, if necessary,
by proposals for adaptations to this Regulation. 
Article 18
Entry into force
1.                      
This Regulation shall enter into force on the twentieth
day following that of its publication in the Official Journal of the
European Union.
2.                      
This Regulation shall apply from [Office of
Publications insert date = 6 months after implementation deadline for Directive
of the European Parliament and of the Council on alternative dispute resolution
for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive
2009/22/EC (Directive on consumer ADR as to be inserted in that
Directive in accordance with Art 22(1) of that Directive], except for Article
5(1), (4), (5) and (6), Article 6(1), (2) and (6), Article 7(4) and (5),
Article 10, Article 15 and Article 16 which shall apply from the date on which
this Regulation enters into force.
This
Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels,
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX 
Information to be provided when filling in the electronic complaint
form
(1)         
Name, address and, if applicable, e-mail and
website address of the complainant party;
(2)         
Whether the complainant party is a consumer or a
trader;
(3)         
Name, address and, if applicable, e-mail and
website address of the respondent party;
(4)         
Whether the respondent party is a consumer or a
trader;
(5)         
Type of goods or services to the sale or
provision of which the complaint relates;
(6)         
Grounds on which the complaint is based;
(7)         
Consumer's place of residence at the time the
goods or services were ordered;
(8)         
Communication method by which the goods or
services were offered and communication method by which the order was made;
(9)         
If applicable, where the trader's offer was made
or the goods or services delivered or supposed to be delivered out of the
operations of a branch, agency or other establishment, the place where that
branch, agency or other establishment is situated;
(10)     
Language of the contract;
(11)     
ADR entities the trader committed to use in
accordance with Article 10(1) of Directive …./…/EU[Office of Publications
please insert number of Directive of the European Parliament and of
the Council on alternative dispute resolution for consumer disputes and
amending Directive 2009/22/EC (Directive on consumer ADR)], if known.
LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
 Regulation on online dispute resolution for consumer disputes. The budgetary impact will be addressed by redeployment for the years 2012 and 2013. The action is part of the Consumers 2020 program for the period 2014-2020. 
1.2.        Policy area(s) concerned
in the ABM/ABB structure[19] 
Consumers
1.3.        Nature of the
proposal/initiative 
√ The proposal/initiative relates to a new action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[20]

¨ The
proposal/initiative relates to the extension of an existing action 
¨ The
proposal/initiative relates to an action redirected towards a new action 
1.4.        Objectives
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
Within heading 1a "Competitiveness for Growth and
Employment", the proposal aims at creating an EU-wide Online Dispute
Resolution system for cross-border online disputes between consumers and
traders. 
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective No..
Creation of an EU-wide Online Dispute Resolution IT system for
cross-border online disputes between consumers and traders. 
ABM/ABB activity(ies) concerned
Consumers
1.4.3.     Expected result(s) and
impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
Consumers and businesses across Europe will have a simple, quick and
low cost means to solve disputes that arise after an online cross-border
transaction. Consumers will be able to seek redress and get compensated, while
businesses will maintain their businesses' reputation and avoid high litigation
costs.
1.4.4.     Indicators of results and
impact 
Specify the
indicators for monitoring implementation of the proposal/initiative.
–              
All ADR entities are to be linked to the ODR
platform and use it when the ODR platform becomes operational at the beginning
of 2015. 
–              
Increase in the number of consumers who are
willing to buy online from another Member State by 20% in 2020 
–              
Increase in the number of businesses that are
willing to sell online in other Member States by 10% in 2020.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
Articles 114 and 169 of the Treaty on the Functioning of the
European Union
Consumers and businesses will have a simple, quick and low cost way
to resolve their disputes on cross-border online transactions using
out-of-court online dispute resolution means. 
1.5.2.     Added value of EU
involvement
The lack of efficient means of resolving disputes affects consumers'
confidence in shopping across borders. Both businesses and consumers clearly
state that concerns about potential redress problems in another Member State
discourage them from selling and buying across borders and thus from fully
reaping the potential benefits of the Internal Market. This situation indicates
that particular attention needs to be paid to generating the confidence of
consumers in the Internal Market and to ensuring a level playing field for
businesses across Member States. 
Despite the low level of current cross-border e-commerce
transactions, there is a rapidly increasing trend of the digital retail market
within the Member States. Thus, ensuring simple, low-cost and effective means
of out-of-court redress is even more important for consumers and traders in
order to engage in online transactions across border. Any action at Member
State level will not lead to the establishment of an EU-wide online dispute
resolution which, as indicated in the Digital Agenda, is an essential tool to
promote e-commerce. 
The objectives pursued can be better achieved by measures at EU
level by reason of its effects and scale. A clear advantage in the development
of ODR at EU level is the effective and adequate treatment of consumer disputes
linked to online cross-border transactions.
Consumers will have a quick, inexpensive and simple way at their
disposal to settle their disputes with traders irrespective of the market
sector and the amount at stake. A large part of consumers do not have a full
trust in the digital Internal Market, despite the numerous benefits that it
offers, such as access to a wider choice of products and services; in about
half of the Member States more than half of the products searched for on the
internet could only be found online in another country. Finally, more effective
ODR in the Internal Market will reduce consumer detriment (now accounting for
0.02% of EU GDP) and allow consumers to make significant savings in online
transactions which can be used to purchase extra goods and services in the
Internal Market. Moreover, traders will have equal possibilities in dealing
with consumer disputes across the EU, thus ensuring a level playing field. 
Unilateral actions at Member State level cannot sufficiently provide
consumer and traders with the benefits mentioned above. On the contrary,
uncoordinated efforts by Member States are likely to result in unequal
treatment for consumers and traders in the Internal Market and create diverging
levels of consumer redress in the EU. Action at EU level in this field is
supported by the vast majority of stakeholders.
Boosting the confidence of market actors, businesses and citizens
alike, is essential to improve Europe's competitiveness. A well functioning
Single Market encompassing 500 million consumers, whose spending accounts for
56% of EU GDP, and more than 21 million businesses is the basis for delivering
smart, sustainable and inclusive growth, in line with the objectives of the
Europe 2020 Strategy. 
1.5.3.     Lessons learned from
similar experiences in the past
There is currently no IT system at EU level that deals with the
online resolution of disputes between consumers and traders regarding
cross-border online transactions. However, a number of IT tools that connect
various actors across the different Member States are already in place. The new
IT tool will be based largely on those tools. The more relevant ones are the
IMI IT-tool, the ECC IT-tool and the SOLVIT IT-tool.
1.5.4.     Coherence and possible
synergy with other relevant instruments
The Regulation on ODR is based on the proposal for a Directive on alternative
dispute resolution for consumer disputes (Directive on consumer ADR).
1.6.        Duration and financial
impact 
√ Proposal/initiative of limited
duration 
–     
√   Proposal/initiative in effect from
2012 to 2020.
–     
√ Financial impact from 2012 to 2020. 
Proposal/initiative of unlimited duration
–     
Implementation with a start-up period from 2012
to 2014,
–     
followed by full-scale operation.
1.7.        Management mode(s)
envisaged[21] 
√ Centralised direct management by the
Commission 
¨ Centralised indirect management with the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities[22]

–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management with the Member States 
¨ Decentralised management with third countries 
¨ Joint management with international organisations (to be specified)
If more than one
management mode is indicated, please provide details in the
"Comments" section.
Comments 
No
comments.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
Specify frequency
and conditions.
Every three years and for the first time no later than five years
after the entry into force of this Regulation the Commission will publish a
report on the application of the Regulation. The report will be accompanied, if
needed, by proposals for adaptations to the Regulation.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
The budget implementation covers a feasibility study and the
development of an IT platform for ODR. The main risks are the following:
The "Directive on alternative dispute resolution for consumer
disputes (Directive on consumer ADR)" is the basis for the ODR Regulation,
as the ODR platform will include the national Alternative Dispute Resolution systems
that will be notified according to the Directive. Therefore, an incomplete or
late transposition of the Directive on consumer ADR will affect the effective
functioning of the EU Online Dispute Resolution system.
Even though the Commission runs a number of IT tools, the ODR
platform will be one of the tools with the biggest number of actors connected
and with applications that will allow a tailored approach to the needs of its
actors. Technical difficulties that delay the development of the platform are a
possible risk.
2.2.2.     Control method(s) envisaged

The budget will be implemented by centralised direct management.
The Commission will monitor the analysis, programming and testing
phase of the development of the IT tool. The Unit responsible for Information
Systems in DG SANCO has wide experience in managing IT tools (e.g. ECC tool,
CPCS, RAPEX), some of which present similarities to the ODR platform (the ECC
tool). This past experience will allow the timely and effective reaction to
possible problems. In addition, the feasibility study that will be carried out
in 2012 will help identify possible risks and technical difficulties, thus
enabling the smooth development of the ODR platform. DIGIT and DGT will be also
consulted for certain technical aspects (e.g. automatic translation machine). 
2.3.        Measures to prevent fraud
and irregularities 
Specify existing or
envisaged prevention and protection measures.
In addition to the application of all regulatory control
mechanisms, DG SANCO will devise an anti-fraud strategy in line with the
Commission's new anti-fraud strategy (CAFS) adopted on 24 June 2011 in order to
ensure inter alia that its internal anti-fraud related controls are
fully aligned with the CASF and that its fraud risk management approach is geared
to identify fraud risk areas and adequate responses. 
The Commission respects the provisions of the financial
regulation to conduct the procurement of the IT hard-, software and related
services; for all contracts signed the provisions relating to audits and checks
by Court of Auditors and OLAF apply.
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing expenditure budget lines 
In order of multiannual
financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Description………………………...……….] || Diff./non-diff ([23]) || from EFTA[24] countries || from candidate countries[25] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 1A || 17.020200 || Diff. || YES || NO || NO || NO 
·      New budget lines requested: Not Applicable
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading……………………………………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
   || [XX.YY.YY.YY]   ||   || YES/ NO || YES/ NO || YES/ NO || YES/ NO 
3.2.        Estimated impact on
expenditure 
3.2.1.     Summary of estimated impact
on expenditure 
EUR million (to 3 decimal places)
 Heading of multiannual financial framework: || Number 3 || Competitiveness for Growth and Employment 
 DG: Health and Consumers ||   ||   || Year 2012 || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line: 17.020200 || Commitments || (1) || 0,150 || 1,000 || 1,000 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 3,95 
 Payments || (2) || 0,150 || 1,000 || 1,000 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 3,95 
 Number of budget line || Commitments || (1a) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2a) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Appropriations of an administrative nature financed from the envelope for specific programmes[26] ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG Health and Consumers || Commitments || =1+1a +3 || 0,150 || 1,000 || 1,000 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 3,95 
 Payments || =2+2a +3 || 0,150 || 1,000 || 1,000 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 0,300 || 3,95 
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADING <….> of the multiannual financial framework || Commitments || =4+ 6 || 0,150 || 1,0 || 1,0 || 0,3 || 0,3 || 0,3 || 0,3 || 3,95 
 Payments || =5+ 6 || 0,150 || 1,0 || 1,0 || 0,3 || 0,3 || 0,3 || 0,3 || 3,95   
If more than one heading is affected by the proposal /
initiative: Not Applicable
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework: || 5 || " Administrative expenditure " 
EUR million (to 3 decimal places)
   ||   ||   || Year 2012 || Year 2013 ||   ||   ||   || TOTAL 
 DG: <Health and Consumers> || 
  Human resources || 0,318 || 0,318 ||   ||   ||   ||   ||   || 0,636 
  Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL DG <Health and Consumes.> || Appropriations || 0,318 || 0,318 ||   ||   ||   ||   ||   || 0,636 
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) ||   ||   ||   ||   ||   ||   ||   || 0,636 
EUR million (to 3 decimal places)
   || Year 2012 || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 
 Payments || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 || 4,586 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
√   The
proposal/initiative requires the use of operational appropriations, as
explained below: 
Commitment appropriations in EUR million (to 3 decimal
places)
 Indicate objectives and outputs ||   ||   || Year 2012 || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 OUTPUTS 
     || Type of output || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost  || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost 
 SPECIFIC OBJECTIVE No 1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
  - Output IT platform ||   ||   || 1 ||   ||   || 1,0 ||   || 1,0 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||  1 || 2,0 
 - Output IT platform maintenance ||   ||   || 1 ||   ||   ||   ||   ||   ||   || 0,3 ||   || 0,3 ||   || 0,3 ||   || 0.3 ||   || 0,3 ||   || 0,3 || 1  ||  1,8 
 - Output Feasibility study  ||   ||   || 1 || 0,150 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||  1 ||  0,150 
 Sub-total for specific objective N°1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 SPECIFIC OBJECTIVE No 2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Sub-total for specific objective N°2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   || 0,150 ||   || 1,0 ||   || 1,0 ||   || 0,3 ||   || 0,3 ||   || 0,3 || 0,3 ||   || 0,3 ||   || 0,3 ||   || 3,95  
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary 
–     
√   The
proposal/initiative does not require the use of administrative appropriations 
–     
√ The
proposal/initiative requires the use of administrative appropriations, as
explained below:
EUR million (to 3
decimal places)
   || Year 2012 || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources || 0,318 || 0,318 ||   ||   ||   ||   ||   ||   ||   || 0,636 
 Other administrative expenditure ||   || 0, 030 || 0,020 || 0,030 || 0,010 || 0,010 || 0,010 || 0,010 || 0,010 || 0,130 
 Subtotal HEADING 5 of the multiannual financial framework ||   || 0, 348 || 0,020 || 0,030 || 0,010 || 0,010 || 0,010 || 0,010 || 0,010 || 0,448 
 Outside HEADING 5[27] of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 0,318 || 0,348 || 0,020 || 0,030 || 0,010 || 0,010 || 0,010 || 0,010 || 0,010 || 4,798 
3.2.3.2.  Estimated requirements of
human resources 
–     
¨  The proposal/initiative does not require the use of human
resources 
–     
√   The
proposal/initiative requires the use of human resources, as explained below[28]:
Estimate to be expressed in full amounts
(or at most to one decimal place)
   || Year 2012 || Year 2013 ||   ||   || Year N 
  Establishment plan posts (officials and temporary agents) || 
 17 01 01 01 (Headquarters and Commission’s Representation Offices) || 2 (0,254) || 2 (0,254) ||   ||   ||   ||   ||   
 XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   ||   ||   
 XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   ||   ||   
 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   ||   ||   
  External personnel (in Full Time Equivalent unit: FTE)[29] || 
 17 01 02 01 (CA, INT, SNE from the "global envelope") || 1 (0,064) || 1 (0,064) ||   ||   ||   ||   ||   
 XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) ||   ||   ||   ||   ||   ||   ||   
 XX 01 04 yy [30] || - at Headquarters[31] ||   ||   ||   ||   ||   ||   ||   
 - in delegations ||   ||   ||   ||   ||   ||   ||   
 XX 01 05 02 (CA, INT, SNE - Indirect research) ||   ||   ||   ||   ||   ||   ||   
 10 01 05 02 (CA, INT, SNE - Direct research) ||   ||   ||   ||   ||   ||   ||   
 Other budget lines (specify) ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 3 (0,318) || 3 (0,318) ||   ||   ||   ||   ||   
XX is the
policy area or budget title concerned.
Description of
tasks to be carried out:
 Officials and temporary agents || Development, maintenance and update of the Online Dispute Resolution IT system. 
 External personnel || N/A 
The human resources required will be met by
staff from the DG who are already assigned to the management of the action and
have been redeployed within the DG, together if necessary with any additional
allocation which may be granted to the managing DG under the annual allocation
procedure and in the light of budgetary constraints.
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
√   Proposal/initiative
is compatible with both 2007-2013 and 2014-2020 multiannual financial
frameworks.
–     
¨  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required, specifying
the budget lines concerned and the corresponding amounts.
…………………………………………………………………………………………………………..
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[32].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
…………………………………………………………………………………………………………..
3.2.5.     Third-party contributions 
–     
√   The
proposal/initiative does not provide for co-financing by third parties 
–     
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to 3 decimal places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations cofinanced ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
–     
√   Proposal/initiative
has no financial impact on revenue.
–     
¨ Proposal/initiative has the following financial impact:
¨         on own resources 
¨         on miscellaneous revenue 
EUR million (to 3 decimal places)
 Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[33] 
 Year N || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) 
 Article …………. ||   || 5.                          ||   ||   ||   ||   ||   ||   
For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.
…………………………………………………………………………………………………………..
Specify the method for
calculating the impact on revenue.
…………………………………………………………………………………………………………..
[1]               The
2010 report of the European Consumer Centre's Network indicates that more than half of complaints (56.3%) received by the ECC-Net
were linked to e-commerce transactions. However, out of the 35.000 cross border
complaints received by ECC network in 2010, 91% could not be referred to an ADR
scheme in another Member State as no suitable ADR scheme existed (http://ec.europa.eu/consumers/ecc/docs/2010_annual_report_ecc_en.pdf).
[2]               Europe
2020 flagship initiative: "A Digital Agenda for Europe", COM (2010)
245, p. 13.
[3]               Commission
Communication "Single Market Act" COM (2011) 206, p.9.
[4]               "Consumer
redress in the European Union: consumers' experiences, perceptions and
opinions", 2009 http://ec.europa.eu/consumers/redress_cons/docs/cons_redress_EU_qual_study_report_en.pdf

[5]               Public
consultation on the use of alternative dispute resolution (ADR) as a means to
resolve disputes related to commercial transactions and practices in the EU.
Replies and feedback statement available at: http://ec.europa.eu/consumers/redress_cons/adr_en.htm

[6]               http://www.european-consumer-summit.eu/workshops3_en.asp

[7]               Proposal for a Regulation of
the European Parliament and of the Council on a consumer programme 2014-2020,
SEC(2011) 1320 final and SEC(2011) 1321 final.
[8]               OJ
C , , p. .
[9]               Commission
Communication "Single Market Act" COM (2011) 206, p.9.
[10]             Conclusions
of the European Council of 24-25 March 2011, EUCO 10/11, p. 4; see also
Conclusions of the European Council of 23 October 2011, EUCO 52/11, pp. 1-2.
[11]             OJ
L 136, 24.5.2008, p. 3.
[12]             OJ
L 12, 16.1.2001, p. 32.
[13]             OJ
L 199, 31.7.2007, p. 40.
[14]             OJ L 177, 4.7.2008, p. 6.
[15]             OJ
L …, …., p. ….
[16]             OJ
L 281, 23.11.1995, p. 31.
[17]             OJ
L 8, 12.1.2001, p. 1.
[18]             OJ
L ..., ..., p. ....
[19]             ABM:
Activity-Based Management – ABB: Activity-Based Budgeting.
[20]             As
referred to in Article 49(6)(a) or (b) of the Financial Regulation.
[21]             Details
of management modes and references to the Financial Regulation may be found on
the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[22]             As
referred to in Article 185 of the Financial Regulation.
[23]             Diff.
= Differentiated appropriations / Non-Diff. = Non-differentiated appropriations.
[24]             EFTA:
European Free Trade Association. 
[25]             Candidate
countries and, where applicable, potential candidate countries from the Western
Balkans.
[26]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.
[27]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.
[28]             The
budgetary impact will be addressed by redeployment in years 2012 and 2013. 2014
onwards, the human resources needs are covered by the Consumers 2020 program.
[29]             CA=
Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune
Expert en Délégation" (Young Experts in Delegations); LA= Local Agent;
SNE= Seconded National Expert.
[30]             Under
the ceiling for external personnel from operational appropriations (former "BA"
lines).
[31]             Essentially
for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and
European Fisheries Fund (EFF).
[32]             See
points 19 and 24 of the Interinstitutional Agreement.
[33]             As
regards traditional own resources (customs duties, sugar levies), the amounts
indicated must be net amounts, i.e. gross amounts after deduction of 25% for collection
costs.