When people hear the term Alternative Dispute Resolution (ADR), many still picture a complicated legal process or assume it’s simply a last resort before going to court.
In reality, Alternative Dispute Resolution is an effective, flexible, and practical way to resolve disputes across a wide range of sectors – and, though it gets talked about less than going to court, it’s actually becoming increasingly popular and accessible among consumers due to its cost-effectiveness and speed!
Despite the growing popularity of ADR, however, several misconceptions still continue to prevent individuals and organisations from taking advantage of its benefits. That’s why we at RetailADR have decided to take some time in this article to address some of the most common myths about ADR… and explain why the reality is often very different.
Read on to hopefully learn something new!
You can trust we know our stuff – we’re part of CDRL, a group operating 5 ADR schemes!
MYTH 1: ADR is only for small or simple Disputes
One of the biggest misconceptions is that ADR is only suitable for minor disagreements.
It makes sense why people think this, as ADR is often advertised as a hassle-free alternative to court (which it is), but this can sometimes mislead people into thinking the disputes themselves also need to be hassle-free to begin with… Which is untrue!
In fact, ADR is regularly used to resolve complex commercial disputes, spanning most sectors you can think of. Many traders include ADR clauses in their contracts because it offers a structured and efficient way to resolve even the most sophisticated disputes.
In fact, ADR is almost even better with regards to complex disputes than simple ones. Instead of dragging a complex case out in court for months (or years), traders and consumers alike generally want to resolve things quickly, and amicably, where possible!
The flexibility of ADR means the process can be tailored to suit disputes of almost any size or complexity.
MYTH 2: Going to Court produces better results
… This is a very common misunderstanding.
While it’s absolutely true that court is legitimate, heavily regulated, and produces legally binding results, that doesn’t mean it’s the only legitimate option to resolve a retail dispute.
Both the courts and ADR schemes base judgements on the facts of each case… and ADR schemes can be just as regulated, legitimate – and can provide legally binding outcomes that are enforceable in court, too!
For example, RetailADR is administered and managed by Consumer Dispute Resolution Limited, an independent Alternative Dispute Resolution provider, and is approved by Government under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 and the Digital Markets Competition and Consumers Act 2024.
We point this out not to pat ourselves on the back… But to demonstrate to you that ADR can be just as subject to legal and regulatory oversight as the courtroom!
Using RetailADR as an example, we operate according to strict deadlines, rules, and our services are annually reviewed by the CTSI to ensure we maintain our high standards.
Check out our Annual Activity Reports here: Annual Activity Reports!
Although court is a valid, tried and true option to resolve a dispute, it’s always worth remembering: litigation can also be lengthy, expensive, and adversarial. ADR often allows parties to explore practical, commercially sensible solutions that can normally be backed up by court later if necessary.
In many cases, resolving a dispute through ADR can save significant time, legal costs, and stress while achieving the same legally binding outcome.
MYTH 3: ADR always costs money
The term ‘Alternative Dispute Resolution’ sounds scary, legal, and technical, so many people immediately assume that using it is bound to be expensive – which is offputting, particularly if you’re already facing financial pressure because of a dispute.
… The good news is this is completely untrue!
In reality, ADR is often incredibly cost-effective – especially when compared with taking a case to court -, and doesn’t even always cost money.
Just using our own scheme as an example, RetailADR is completely FREE for consumers to use!
It’s not just us, either! If you do your research, you’ll find that most ADR providers run schemes that are free to the consumer. Neat, right?
ADR processes are generally quick, streamlined, and designed to minimise unnecessary costs.
MYTH 4: You need a lawyer to use ADR
Another common misconception is that legal representation is essential for participating in ADR.
… For this one, people have sort of got things the wrong way round. As an ADR provider, we’re the ones who bring the necessary legal expertise to review your case – you don’t have to bring a lawyer of your own to represent you!
While parties are always free to seek legal representation if they wish, most ADR processes are designed to be accessible to everyone, regardless of whether or not they have a lawyer. Lawyers are optional!
However, if you do wish to bring a lawyer along to help with your RetailADR process when filing a complaint with us, you can always fill out our Representative Authority Form.
This authorises the lawyer to act on your behalf.
Most ADR providers should offer something equivalent to this.
How do I get started?
Another major misconception is that using ADR is complicated and not worth the hassle…
Not true!
At RetailADR, lodging your complaint with us is now easier than ever – you can submit your complaint online, by post or by telephone. It’s up to you!
> Start your complaint with RetailADR
> What to do before you come to us
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