Recital (2)

In 2019, the Commission published a report on the implementation of Directive 2013/11/EU and Regulation (EU) No 524/2013 of the European Parliament and of the Council which revealed that Directive 2013/11/EU has led to increased coverage of consumer markets by quality ADR entities throughout the Union. However, the report also identified that consumer and business uptake of ADR procedures was lagging behind in some sectors and in some Member States. One reason for this was the low level of awareness on the part of consumers and traders about such procedures in Member States where they had been recently introduced. Another reason was the lack of trust of consumers and traders in unregulated ADR entities. Data provided by national competent authorities in early 2022, as well as the evaluation of the implementation of Directive 2013/11/EU conducted in 2023, suggest that the uptake of ADR remained relatively stable, apart from a small increase in the number of complaints related to the COVID-19 pandemic. Most stakeholders consulted in the context of that evaluation confirmed that the lack of awareness and understanding of ADR procedures by consumers, low engagement by traders, gaps in ADR coverage in certain Member States, high costs and complex national ADR procedures, as well as differences in the competences of ADR entities are frequent factors hindering the uptake of ADR procedures. There are additional barriers in cross-border ADR procedures, such as the use of more than one language and the lack of knowledge of the applicable law, as well as specific access difficulties for vulnerable consumers.