Poland - Why fight like cats and dogs? Consumer and undertaking in conciliation court
Over 70 percent of consumers believe that an undertaking’s consent for settling a dispute by way of conciliation proves the care about its customers – as revealed the latest research conducted upon request of the Office of Competition and Consumer Protection (UOKiK). On the World Consumer Rights Day the Office reminds about Alternative Dispute Resolution (ADR) which facilitates quick, cheap and effective settling of disputes.
The latest research commissioned by UOKiK indicates the growing awareness of exisiting ADR among consumers. As much as 75 percent of the respondents surveyed last year had heard of the institutions that provide assistance in settling disputes between consumers and service providers and retailers, compared to merely 41 percent seven years ago. It is widely believed that undertaking’s participation in out-of-court dispute resolution shows the care about its customers, as recently indicated 71 percent of respondents.
The basic advantages ofarbitration, also known as Alternative Dispute Resolution (ADR**), include simplified procedures, short waiting times and low fees. Various forms of out-of-court dispute resolution can be distinguished within the territory of the European Union. In Poland, the majority of cases are heard before 16 permanent consumer conciliation courts operating by the Trade Inspection. Most of the cases considered last year concerned the sale of footwear (1530), fewer regarded renovation and construction services (133), sale of furniture (111) and audio visual equipment and home appliances (106).
Submiting an application for dispute resolution by the conciliation court by the Trade Inspection is totally free of charge.This can be done by any consumer, consumer ombudsman as well as the undertaking. When filing an application, one ought to remember about the necessary documents, such as proof of purchase, complaint report and expert’s opinion. Consumer court can settle a dispute only if both parties (the consumer and the undertaking) agree to that. Proceedings are conducted by arbitrators, whose task is to encourage the parties to reach an agreement. During the hearing, both parties to the dispute can present their cases, evidence and, if necessary, opinions of experts. The result is a settlement or a ruling, which has equal power to that handed down by common courts.Proceedings in cases that are settled amicably take no longer than 14 days, whereas these ended with rulings take about two months.
Despite the significant interest of consumers in this way of dispute resolution (the research reveals as much as 76 percent of respondents claimed that in the event of a dispute with an undertaking they would eagerly address the conciliation courts), this method of settling disputes still is not popular. The main barriers to the development of ADR in our country include undertakings’ reluctance towards the participation in arbitration. Last year in 1085 out of 2684 cases, undertakings refused to participate in proceedings before the permanent consumer conciliation court by the Trade Inspection.
Submiting an application for dispute resolution by the conciliation court by the Trade Inspection is totally free of charge.This can be done by any consumer, consumer ombudsman as well as the undertaking
According to UOKiK, what could help to increase the popularity of out-of-court dispute resolution, is the introduction of a presumed consent of an undertaking to arbitration. Currently, all undertakings in Norway are obliged to participate in amicable dispute resolution. By contrast, in countries such as Austria, the Netherlands and Ireland only undertakings operating in some industries, such as telecommunications, financial services and energy are obliged to participate in this procedure.
Popularization of ADR with wide participation and cooperation of social and public partners constitutes one of the priorities for the 2010-2013 Consumer Policy. Already, social organisations, including consumer and business organisations can apply for entry into the ADR database of the European Commission. Currently, the EC database includes approximately 400 entities that were usually established out of initiative of business communities, as their activities reduce the risk of costly lawsuits or fines imposed on undertakings by institutions protecting consumer interests. Registration in the European arbitration database ensures that all disputing parties can take advantage of fair proceedings. Institutions involved in alternative dispute resolution can apply for registration in the ADR database using the form available on the website of the Office of Competition and Consumer Protection and the European Consumer Centre. At present in Poland, apart from courts operating by the Trade Inspection, the European database includes also Banking Ombudsman and Insurance Ombudsman.
Issues concerning resolution of disputes by way of conciliation are being discussed today in the debate entitled “Why fight like cats and dogs? Consumer and Undertaking in Conciliation Court”, which is broadcast online at www.uokik.gov.pl. Participants of the discussion include representatives of the Trade Inspection, the Office of Electronic Communications, the European Consumer Centre, the Polish Confederation of Private Employers “Lewiatan” and experts of the Office of Competition and Consumer Protection. The media patron of the debate is TVN CNBC.
Every year on 15th March we celebrate the World Consumer Rights Day. On this very day, in 1962 the US President John F. Kennedy declared 4 basic consumer rights (the right to be informed, the right to choose, the right to safety and the right to be heard). It is worth noting that in Poland consumer ombudsmen provide assistance in consumer disputes with undertakings. Free of charge advice can be also obtained by calling 800 007 707. One of the sources of financing for consumer advisory in Poland is the budget of UOKiK.
Read the press release.