Consumer Arbitration and European Private Law: A Seminal Consumer Arbitration Model Law for Europe

Abstract

Abstract: This article explores the way in which consumers could best resolve their disputes through arbitration. It focuses on arbitration and looks at how this works - or should work - within the legislative framework of the European Union. The essence of the consumer arbitration problem in Europe is that the existing arbitration laws (sensu latu) are aimed at regulating disputes between businesses. Consumer arbitration is generally not subject to a distinct set of rules. Most European Member States tend to ignore such distinctions in their legislation. Some have adopted specific rules regarding the consumer arbitration agreement. Oftentimes the same laws apply to both types of arbitration procedures. Consumer arbitration, however, serves a different purpose and has a different dynamic than business-to-business arbitration. This article departs from the basic assumption that also with regard to arbitration, rules that are tailored to the needs of Business-to- Business (828) relationships may not necessarily produce satisfactory results for the parties in a consumer arbitration. The aim of the proposed research is to draft a set of legal rules that delineates a workable and legitimate consumer arbitration in Europe that is sufficiently attuned to the standards of consumer protection required by the European Union legislation.