Poland - Alternative dispute resolution - UOKIK'S REPORT
Two thirds of mediations carried out by the Trade Inspection Authority conclude with a positive result for the consumer. The amicable resolution of consumer disputes is increasingly popular and it will be extended to all the sectors in the next year. UOKiK has just initiated works on changes in the Polish law.
A dispute with an entrepreneur does not always mean a long battle before a common law court. Simplified procedures, short dispute resolution period and low costs – these are the main advantages of extrajudicial methods of dispute resolution (ADR). As the statistics show it, the total value of disputes heard by the Permanent Consumer Courts of Arbitration at the Trade Inspection Authority during the last five years amounted to over PLN 15 million.
Challenges
Currently, the amicable dispute resolution in Poland is possible only in case of some services and transactions. Many sectors, e.g. legal or medical services, lack procedures for extrajudicial resolution of a dispute between a consumer and an entrepreneur. The necessity to obtain consent of the entrepreneur for amicable dispute resolution as well as difficulties in vindicating their rights in cross-border transactions constitute a barrier for customers. The European Parliament and the EU Council regulations adopted in the previous year – the directive on alternative dispute resolution (ADR Directive) and the regulation on online dispute resolution (ODR regulation) – are to improve this situation. The amicable dispute resolution will be easier and identical for all the consumers in the European Union and will cover all the sectors. The Office of Competition and Consumer Protection is responsible for preparation of assumptions to the bill introducing EU regulations to the Polish law.
Objectives
The ADR system currently functioning in Poland is described in a report elaborated by UOKiK. It contains also proposals of future solutions, being the result of widespread social consultations started at the end of 2013. It is expected that new regulations will encourage consumers and entrepreneurs to more often use this form of dispute resolution: the assumptions are that in five years the number of cases will double and reach ca. 45 thousand per annum. The maximum time for dispute resolutions should be shorter than 90 days and the cost should amount to ca. PLN 30.
What system in Poland?
The European ADR Directive stipulates creation of a system that will cover all the disputes between an entrepreneur and a consumer on the EU market. Analyses carried out by the Office indicate that the optimum solution for our country is to maintain and develop the mixed extrajudicial system of consumer dispute resolution, including extrajudicial institutions that intervene in such cases (the so-called ADR entities), both non-public (created for example by organisations of entrepreneurs from a given sector) and public ones. On one hand, it will guarantee the competence and professionalism of the ADR entities, on the other – they will have the opportunity to cooperate and will complement each other. In addition to filling possible system gaps, the Office proposes to establish a universal ADR entity, competent in matters for which no specialised ADR entity would be created. Public and private ADR entities must be impartial, fair and their activity transparent.
Online dispute resolution
According to the EU law provisions (the so-called ODR regulation), the ADR system will be completed with an electronic platform enabling consumers to submit a dispute to an entity resolving disputes with entrepreneur from another member state. The complaint will be lodged electronically through a special form. It will be addressed to a dispute resolving entity chosen by both parties. Information on the entity’s decision will also be delivered via the Internet. According to the ODR regulation, the trader will be obliged to publish a mention on its internet site and in its commercial documents informing whether he agrees for amicable resolution of possible disputes and what entity will resolve it.
Currently binding system
Currently in Poland, similarly to many other countries, there is a number of institutions supporting consumers. These are sector ADR entities (independent or acting on the government or self-government level) and the Trade Inspection Authority structures: the Permanent Consumer Courts of Arbitration (PCCAs) and the mediation.
The PCCAs resolve disputes relative to sales and services the value of which does not exceed 10 thousand zlotys. Only the PCCA at the Trade Inspection Authority in Warsaw does not have limits as to the object of the dispute. Proceedings conducted by the PCCA at the Trade Inspection Authority are free of charge, except for costs of possible appraiser or expert fees. The average time for issuing a decision is up to two months. The court resolves the dispute under the condition that both the consumer and the entrepreneur agree for that.
In the years 2009-2013, over 13 thousand applications were filed to the PCCAs. 5.5 thousand decisions were issued. Over half of applications were not examined, however. The most frequent reason for their rejection was lack of the entrepreneur’s consent for amicable dispute resolution (in 2013 – 990 refusals per 2597 applications); other reasons are lack of the PCCA competences to resolve the case and formal irregularities.
An important role in dispute resolution is also played by free mediation, which can also be carried out by the Trade Inspection Authority. The mediator helps parties to reach a compromise by themselves. This type of dispute resolution also requires consent of both parties. In the years 2009-2013, the Trade Inspection Authority inspectors carried out over 58 thousand mediations. Two thirds of these proceedings ended with a positive result for the consumer. In 2009, the consumers filed over 10 thousand applications for mediation in resolving their disputes to the Trade Inspection Authority, and in 2013 the number of such applications exceeded 13 thousand. The majority of disputes thus resolved were related to footwear purchases. Less frequently, the disputes concerned clothes, computer equipment and services, e.g. car repairs or laundry services.
Report and debate in UOKiK
Today’s debate entitled “Amicable consumer dispute resolution – current status and directions for changes” constitutes a good occasion for evaluation of the current amicable dispute resolution system from the point of view of entrepreneurs and consumers. During the meeting, the Office presented its proposals concerning the future ADR model, contained in the Office’s report.
Where for help?
Conciliation courts and mediators at the Trade Inspection Authority do not examine cases of every type. In some specialised cases (banking, finances), the parties turn for mediation to other entities, e.g. the Bank Arbiter, as well as conciliation courts at the Polish Insurance Ombudsman, the Polish Financial Supervision Authority and the Office of Electronic Communications. In all these cases and on each stage of the dispute with an entrepreneur, a consumer may count on free help of the municipal or district consumer ombudsman.