Conflicts with a store or marketplace can be resolved without court — within 90 days: what rights buyers will get

Millions of consumers in Ukraine may gain a new way to protect their rights without lengthy court proceedings. If a buyer is dissatisfied with a product, service, delivery, warranty repair, or digital service, a dispute with the seller or provider is proposed to be resolved through special out-of-court dispute resolution bodies. Such a system already operates in European Union countries and allows conflicts to be resolved faster, simpler, and cheaper than in court. For this purpose, Ukraine plans to create a network of specialized bodies that will consider consumer complaints and make decisions on disputes between citizens and businesses.

This mechanism is provided for by draft law No. 15100 "On out-of-court resolution of consumer disputes," which implements the requirements of EU Directive 2013/11/EU on alternative consumer dispute resolution.

The Verkhovna Rada Committee on Digital Transformation reviewed the draft law and noted that the comments and proposals submitted require further elaboration.

Which disputes are proposed to be resolved without court

The draft law applies to disputes between consumers and business entities regarding:

• non-performance or improper performance of contractual obligations;
• sale of goods, digital content, and digital services;
• warranty obligations;
• failure to provide mandatory information to consumers;
• unfair commercial practices;
• discrimination based on nationality or place of residence;
• access to services and delivery;
• rights of passengers and tourists;
• change of service provider;
• other violations of consumer rights.

At the same time, the law will not apply to court proceedings, direct negotiations between parties, administrative services, disputes between entrepreneurs, medical services, and services for obtaining higher or professional education.

Who will consider disputes

It is planned to create special bodies for out-of-court resolution of consumer disputes. These may be legal entities, consumer associations, or associations of legal entities that undergo an appointment procedure and are included in the official list.

In the field of electronic communications, the functions of such a body will be performed by the National Commission for the State Regulation of Communications and Informatization (NCCIR), and in the fields of energy and utilities — by the National Commission for State Regulation of Energy and Public Utilities (NERC). Special rules will apply to financial services, taking into account sectoral legislation.

It is also proposed to create a Contact Point that will coordinate the system, interact with European consumer protection bodies, and help citizens choose the competent body to consider the dispute, including cross-border ones.

How the procedure will work

Before applying to the out-of-court dispute resolution body, the consumer must first submit a complaint directly to the business entity. Only after this can they initiate the out-of-court procedure.

Complaints can be submitted both in paper and electronic form. Dispute consideration is allowed to be conducted remotely, including via videoconferences. The bodies will have the right to consider both domestic and cross-border disputes.

The consumer may be refused consideration of the dispute, in particular if:

• they did not submit a complaint to the seller or service provider;
• the dispute is already being considered or has been considered by another body or court;
• the application was submitted more than one year after the complaint was submitted to the business entity;
• the dispute is unfounded or shows signs of abuse of the right to complain.

How long the consideration will take

The draft law provides that the results of the procedure must be obtained within 90 calendar days from the date of receipt of the complaint and documents. In complex cases, the term may be extended up to 90 calendar days with notification of the parties.

The procedure for consumers will be free of charge or carried out for a nominal fee of one non-taxable minimum income of citizens.

What decisions can be made

Based on the results of the consideration, the out-of-court dispute resolution body will be able to:

• satisfy the consumer's complaint;
• partially satisfy the complaint and propose a way to resolve the conflict;
• refuse to satisfy the complaint and inform about other ways to protect rights.

At the same time, the decision will be mandatory for the business entity to comply with. For the consumer, it may be either voluntary ("proposed") or mandatory ("imposed") if the consumer has previously agreed to such a dispute resolution format.

Regardless of the outcome, the parties will retain the right to go to court.

New obligations for business

Business entities will be required to inform consumers about the out-of-court dispute resolution bodies to which they can apply in case of conflict. Such information must be placed on websites, mobile applications, and in contracts. For financial institutions, it must also be provided at customer service locations.

Failure to provide such information is proposed to be subject to liability in accordance with consumer protection legislation.

Other changes provided

The draft law also amends legislation on consumer protection, digital content, and advertising. In particular:

• rules for returning and exchanging goods of proper quality are clarified;
• the procedure for refunding money by the same method as payment is established if the parties do not agree otherwise;
• cases when the consumer cannot refuse a distance contract are defined;
• new requirements for informing consumers about the possibility of out-of-court dispute resolution are introduced;
• the use of English words, abbreviations, acronyms, and designations in Latin and Greek alphabets in advertising is allowed.

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