Ofcom’s review aims to ensure fair and consistent outcomes for consumers, while strengthening its oversight of the ADR process
ADR schemes offer free and independent perspective
On 29 November 2023, Ofcom launched a review of alternative dispute resolution (ADR) for the telecoms sector. ADR schemes – which many operators are required to be part of under the Communications Act 2003 – offer a potential course of redress for consumers in dispute with their provider. Two ADR schemes have been approved by Ofcom: the Communications Ombudsman and the Communications and Internet Service Adjudication Scheme (CISAS). Both act as a free, impartial and independent judge for unresolved complaints and for instances where a consumer considers the outcome of a complaint unsatisfactory. Ofcom’s review will invite stakeholders to offer input on how to improve current ADR processes and schemes, and will focus will be on three main areas:
Facilitating consumer access to ADR, with a review of the timeframes involved;
Consumer experience of the ADR process, including whether the schemes are transparent and delivering fair and consistent outcomes; and
Key performance indicators (KPIs) for ADR, and whether they enable sufficient oversight of scheme performance.
Should operators inform their customers of ADR schemes earlier?
Although consumers have the right to submit a case to an ADR scheme to settle out of court, this is reliant on their awareness of those rights and an understanding of how to navigate the process. Operators are required to inform consumers, via an ADR letter, about their right to escalate a dispute if it remains unresolved after eight weeks (or sooner, in the case of a deadlock). While the same timeframe is employed across most regulated sectors, consumer bodies have previously argued that this should be shorter and the Government consulted in 2021 on a standardised four-week limit (but stopped short of mandating it). Ofcom considers it is now appropriate to explore the possibility of an accelerated timeline, as well as whether consumers, particularly those from vulnerable groups, are receiving sufficient appropriate guidance and support at different stages of the ADR process.
Ofcom’s review could see a change in reported KPIs
Despite both the Communications Ombudsman and CISAS being approved by Ofcom, there is a discrepancy between the two processes. Adjudications made via CISAS are final; however, this is not the case for Communications Ombudsman, which allows an appeal against a decision upon presentation of further evidence. Concerns surrounding the impact this may have on consumer outcomes have led to the disparity coming under scrutiny. Currently, the ADR schemes are assessed against KPIs on an ongoing basis. While both schemes informally provide quarterly updates on these KPIs to Ofcom, the regulator will consider whether this offers sufficient transparency or if changes to this approach (e.g. requiring information formally) would be beneficial. Ofcom’s call for inputs is open until 10 January 2024, with the regulator intending to publish its preliminary findings in the Autumn.
