Effective from February 1, 2016, the new Act No. 391/2015 Coll. on Alternative Resolution of Consumer Disputes (the “Act”) enables traders established in Slovakia and consumers residing anywhere within the European Union to settle their domestic or cross-border (online) disputes arising from consumer contracts through government-approved alternative dispute resolution (“ARD”) entities. The Act transposes EU Directive 2013/11/EU on Alternative Dispute Resolution for Consumer Disputes and implements EU Regulation No. 524/2013 on Online Dispute Resolution for Consumer Disputes.

Pursuant to the Act, traders are obliged to inform consumers about the possibility to settle disputes, should any arise, through an ADR framework established by the Act. The consumer may initiate the ADR procedure by submitting a complaint with the relevant ADR entity after a previous remedial request addressed to the trader has been ignored or denied. Both the consumer and the trader have a duty to provide assistance and cooperation to the relevant ADR entity resolving their dispute. Under the Act, ADR entities must comply with various requirements relating to staff expertise, independence and impartiality, transparency and fairness and effectiveness of the ADR procedure.

Under the Act, the ADR procedure is offered as a simple, no-cost and fast out-of-court solution to consumer disputes. Despite the obvious benefits, it still remains to be seen whether consumers or traders will adopt the practice. The agreement reached under the ADR scheme is binding on both parties. The participation in the ADR procedure, however, does not preclude the possibility of seeking redress through court proceedings.