Section 1.Scope of the Act

This Act relates to alternative dispute resolution (ADR) entities which deal with consumer matters and which are seeking or have been granted authorisation pursuant to this Act. This Act also applies to the Norwegian Consumer Council,^​1 unless otherwise provided in or in accordance with this Act.

This Act's section 27 also applies to dispute resolution entities established under the provisions of other legislation and which meet the requirements of Directive 2013/11/EU relating to alternative dispute resolution for consumer disputes (Consumer ADR).

This Act does not apply to cases relating to

This Act applies to Svalbard and Jan Mayen to the extent determined by His Majesty, the King. The King may make exceptions to the Act and draw up such particular rules as local conditions warrant.

Section 2.Definitions

Under this Act, the term

Section 3.Application for authorisation as an ADR entity

An application for authorisation as an ADR entity may be granted if the entity meets the requirements set out in this Act. The Norwegian Consumer Council shall not apply for such authorisation. The Ministry is the licensing authority.

The Ministry may issue statutory regulations prescribing what information shall be provided in the application for authorisation and how that information shall be provided.

Section 4.Amended requirements

If the requirements set out in or pursuant to this Act are amended, those amendments also apply to ADR entities which have already been licensed. The same applies if new requirements are issued in or pursuant to this Act.

Section 5.Grounds for formation and articles of association

The ADR entity shall be established by law or agreement between one or more commercial sectors and the Norwegian Consumer Council or another organisation that represents consumers in a particular field. This requirement does not apply to the Norwegian Consumer Council.

The ADR entity shall adopt articles of association. The Ministry may issue statutory regulations prescribing the contents of such articles of association.

Section 6.The ADR entity's remit. Limits on disputed amounts

The ADR entity shall have a clearly defined remit.

The ADR entity may decide that it will not deal with claims that fall below a certain sum. This sum must not be set so high that it materially weakens the consumer's ability to have his or her case considered. The ADR entity may also set an upper limit on disputed amounts.

The ADR entity shall not deal with matters relating to the recovery of claims which the complainant's opposing party has already accepted.

The ADR entity shall handle disputes between traders established in Norway and consumers domiciled in Norway or in other EEA states.

The ADR entity shall deal with complaints from consumers who have a real need to have their claim against the trader decided. The ADR entity may allow the trader to file a claim on equivalent terms.

Section 7.Deadline for the submission of claims. Charges

The ADR entity may set deadlines for bringing cases before it. No such deadline must be less than one year after the complainant has submitted a written complaint to the opposing party.

The ADR entity may charge an administration fee. For consumers, the fee may amount to only a small sum.

Section 8.Requirements with respect to managers, council members, conciliators and case handlers/administrators

Upon their employment by or appointment to the ADR entity, managers, council members, conciliators and case handlers/administrators shall disclose any and all matters which may affect their impartiality. Individuals referred to in subparagraph 1 herein shall not be subject to instruction by the parties or their representatives, and the employment or appointment shall be of such a duration that the impartiality requirement is safeguarded. Remuneration shall be independent of the outcome of the case.

The Ministry may issue statutory regulations prescribing the requirements with respect to competence and impartiality applicable to the ADR entity's managers, council members, conciliators and case handlers/administrators.

Section 9.The ADR entity's duty of disclosure and duty to report

The ADR entity has a duty to provide the Ministry at all times with the information that the Ministry requires in order to exercise its licensing authority. The ADR entity shall, without unnecessary delay, notify the Ministry of any changes in relation to that which was disclosed in its application for authorisation.

The ADR entity shall prepare an annual report. The Ministry may issue statutory regulations prescribing the report's contents, communication to the Ministry and publication.

Section 10.Withdrawal of authorisation

To maintain their authorisation, ADR entities shall comply with the requirements stipulated in or pursuant to this Act.

Should the Ministry find that the ADR entity's activities no longer meet the statutory requirements, the ADR entity shall be given three months in which to rectify the matter. If the matter is not rectified within the deadline specified, the Ministry shall withdraw the ADR entity's authorisation.

An ADR entity whose authorisation has been withdrawn shall immediately give notice thereof to the parties involved in any unresolved cases and inform them of the effects this will have for their cases. The ADR entity shall notify the parties that they are entitled to withdraw their case and have the matter conciliated by the Norwegian Consumer Council, see section 23. Notice shall be given in writing.

Section 11.Impartiality, conflict of interest and confidentiality

The ADR entity shall act impartially.

The provisions of the Public Administration Act^​1 relating to conflict of interest and confidentiality apply to managers, council members, conciliators and other case handlers/administrators.

Section 12.The complaint

The ADR entity shall make it possible for consumers to submit complaints both digitally and on paper. Upon request, the ADR entity shall help the consumer to formulate his or her complaint.

The ADR entity must be able to receive and handle complaints through the EU's online complaints portal, in accordance with the requirements relating to online dispute resolution in consumer matters, see section 28.

Section 13.Third-party assistance

ADR shall also be offered in cases where the parties receive legal assistance from a third party. The ADR entity shall notify the parties of this before dispute resolution procedures commence.

Section 14.Rejection

The ADR entity may reject a case if

Grounds shall be given for any decision to reject a case. The parties shall be notified of the decision no later than three weeks after the ADR entity received the complaint, or from the date on which the ADR entity received the documentation necessary to determine whether the case may be rejected.

Decisions by the Norwegian Consumer Council to reject a case cannot be appealed.

Section 15.Exchange of information

The ADR entity shall furnish each party with the complaint, case documents, arguments, evidence and facts submitted by the other party, as well as any declarations or statements issued by expert witnesses. At the same time, the parties shall be given the opportunity to express their views on the actual and legal aspects of the case. The ADR entity shall set reasonable deadlines for statements and final remarks.

The ADR entity shall ensure that the parties can exchange information about the case digitally or by post.

Section 16.Deadline for ADR procedures and requirement for grounds to be given

The ADR entity shall notify the parties as soon as it has received the necessary and relevant documentation from both parties and its consideration of the case can commence. The outcome of the ADR entity's deliberations shall be made available to the parties no later than 90 days from this point in time. In particularly complex cases, this deadline may be extended. The parties shall be notified of any such extension and the new deadline.

The parties shall be notified of the outcome and the grounds therefor in writing or other permanent medium. Permanent medium means any device which enables the parties to store information in such a way that it may subsequently be retrieved in an unaltered state.

Where ADR procedures are organised such that one or both parties must accept or reject the proposed solution, the ADR entity shall give the parties reasonable time to consider the outcome.

Section 17.Information about ADR procedures

Where ADR procedures are organised such that one or both parties must accept or reject the proposed solution, the parties shall be notified:

The Ministry may issue statutory regulations with respect to the ADR entity's duty to provide information about the ADR procedures utilised, and to the way in which such information shall be provided.

Section 18.Organisation

The council shall have a secretariat that offers guidance to the parties and helps to find an amicable solution in accordance with applicable law and the council's own practice, and prepares the cases on behalf of the council. The secretariat may issue an assessment of the case on the basis of decisions made in similar cases.

The Ministry may issue statutory regulations containing more detailed instructions on the organisation of councils, including the secretariat and governing board.

Section 19.The parties' right to withdraw the case from consideration by a council, etc.

Each party shall be entitled, at each and every stage in the proceedings, to withdraw the case from consideration by a council which issues advisory statements.

If the trader is legally bound to participate in the council's proceedings, only the consumer is entitled to withdraw the case.

The parties shall be notified of their right to withdraw the case before ADR procedures commence.

Section 20.Dispute resolution in council meetings

The council shall consider cases in writing. Any council meeting at which the case is considered shall be held in camera.

The council shall consider the case on the basis of the information obtained during the preparatory stage. If the defendant has not issued a statement, the council may decide the case on the basis of the complaint's statement of case.

Section 21.Decisions

The council shall have an equal number of members from the commercial sector and from the Norwegian Consumer Council or members appointed by the Norwegian Consumer Council or other organisation which represents the consumers in a particular field. The council has a quorum when at least two members and the chair are present. Decisions shall be taken by simple majority. In the event of a tie, the council's chair has the casting vote.

Grounds shall be given for the council's decisions. The grounds shall state whether the decision was unanimous. The affiliation of any dissenting council members shall be disclosed. Grounds shall also be given for any minority opinion.

Section 22.Delegation of decision-making authority

The council may decide that the council's chair or secretariat may make decisions regarding the rejection of cases, as well as determine cases on the basis of the facts where normal practice exists or the council has made a decision establishing a precedent for similar cases.

Decisions made by the council's chair or secretariat may be appealed to the whole council. The parties shall be notified of their right to appeal.

Section 23.The Norwegian Consumer Council's conciliation service

In connection with complaints submitted by consumers or traders, the Norwegian Consumer Council^​1 shall conciliate in

The Norwegian Consumer Council decides with definitive effect whether the matter is covered by paragraph 1 above.

The Ministry may issue statutory regulations containing more detailed provisions relating to the Norwegian Consumer Council's conciliation service, remit and entitlement to charge a fee.

Section 24.Matters which may be considered by the Consumer Disputes Commission (FTU)

If no amicable solution is achieved through conciliation pursuant to section 23 (1) (a), either of the parties may bring the matter before the Consumer Disputes Commission for a decision. The Norwegian Consumer Council shall notify the parties in writing of this entitlement and the deadline for bringing the matter before the the Consumer Disputes Commission.

Section 25.Assistance to consumers in connection with cross-border trade

The Norwegian Consumer Council shall help consumers to contact a registered ADR entity in another EEA state in connection with disputes between a consumer and a trader relating to cross-border trade.

Section 26.Relationship with the ordinary courts of law

As long as a case is being considered by a registered ADR entity, neither party may bring the matter before the ordinary courts of law. A case is deemed to be under consideration from the date on which the ADR entity received the complaint.

If a party brings a case which is being heard in the ordinary courts of law before a registered ADR entity, the court may halt further proceedings in the case after the party concerned has filed a request for this. The provisions set out in section 16-15, section 16-18 (3) and (4) and section 16-19 of the Disputes Act^​1 apply correspondingly. When deciding whether to stay the case, the court shall accord weight to whether it is reasonable to do so pending the ADR entity's decision, taking into consideration the time and expense that such a stay would involve for the parties.

A case which has been considered by a registered ADR entity may be brought before the district court without prior consideration by a conciliation board.

Section 27.Registration in the European Commission's list of ADR entities

The Norwegian Consumer Council and ADR entities which have been authorised pursuant to this Act shall be reported to the EFTA states' Standing Committee for registration in the European Commission's list of ADR entities which meet the requirements of Directive 2013/11/EU on Consumer ADR. ADR entities established pursuant to other legislation which meet the directive's requirements may also be reported in the same way.

The Ministry undertakes such reporting pursuant to paragraph 1 above. The Ministry's website shall contain an easily accessible digital link to the European Commission's list of ADR entities.

Section 28.Regulation relating to online resolution of consumer disputes

Article 7j of Annex XIX to the EEA Agreement (Regulation (EU) No 524/2013 of the European Parliament and of the Council of 21 May 2013 on online dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC) applies as law with such adaptations as stipulated in the annex itself, Protocol 1 to the Agreement and the Agreement otherwise.

His Majesty, the King may issue statutory regulations setting out in more detail the implementation of provisions determined pursuant to the Regulation.

The Ministry shall act as the appropriate authority under the Regulation.

The Norwegian Consumer Council shall act as the point of contact under the Regulation. In cases arising out of cross-border trade, the Norwegian Consumer Council shall perform tasks pursuant to Article 7 (2) of the Regulation.

Section 29.Entry into force and transitional regulations

This Act enters into force at such time as His Majesty, the King decides.^​1 The King may cause the individual provisions to enter into force at different times.

The Ministry may issue more detailed transitional regulations.

Section 30.Amendments to other legislation

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