Context
The question arises from the introduction of new fees under the Digital Markets, Competition and Consumers Act 2024 which affect arbitration services provided by small businesses. Since the fee changes were implemented earlier this year, many ADR providers have faced challenges in sustaining their business models.
Question
Whether his Department has provided guidance on the potential impact of the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Fees) Regulations 2026 on small businesses providing arbitration services. Caroline from Lindfield owns a small business that provides arbitration services; since the introduction of the one-size-fits-all fees set down earlier this year, her business model has become unsustainable.
Answer from Kate Dearden
The Department has not provided guidance on that matter. Fees relating to the accreditation and monitoring of alternative dispute resolution providers have not risen since 2015, and have been significantly eroded by the impact of rising costs. The intention behind the new fee structure is to ensure that over time, fees are commensurate with the costs of the Chartered Trading Standards Institute performing the relevant functions to the required standards, that they are predictable for ADR providers, and that they provide cost recovery for the CTSI.
Not addressed: No impact assessment has been done
How: A Well Functioning Adr System Makes Markets Work More Effectively And Drives Economic Growth, We Are Committed To Ensuring That Consumers And Businesses Are Able To Resolve Disputes Early
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