Alternative Dispute Resolution Regulations
Whether his Department has provided guidance on the potential impact of the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Fees) Regulations 2026 on small businesses providing arbitration services.
The Department has not provided guidance on that matter. Fees relating to the accreditation and monitoring of alternative dispute resolution providers have not risen since 2015, and have been significantly eroded by the impact of rising costs. The intention behind the new fee structure is to ensure that, over time, fees are commensurate with the costs of the Chartered Trading Standards Institute performing the relevant functions to the required standards, that they are predictable for ADR providers, and that they provide costs recovery for the CTSI.
I thank the Minister for that response. Caroline from Lindfield owns a small business that provides arbitration services. Since the introduction of the one size fits all fees set down earlier this year, her business model and that of so many other small ADR providers has become nigh on impossible to sustain. Has the Minister considered the impact on the sector from the fee changes? Can she explain why no impact assessment has been done? In particular, has she received feedback from trading standards since the legislation came into force?
I thank the hon. Lady for her question. A well functioning ADR system makes markets work more effectively and drives economic growth. We are committed to ensuring that consumers and businesses are able to resolve disputes early, which helps to raise consumer confidence and compliance rates. We acknowledge that there will be a period of adjustment as the new fee structure beds in, and in the autumn we will conduct a review to assess whether the fee structure should be amended further. We recognise the importance of ensuring that charges are fair and proportional for all ADR providers and the CTSI as the competent authority.