ADRs, which are third-party ombudsman schemes that help consumers resolve complaints, are being scrutinised by the UK’s telecommunications watchdog. 

Ofcom requires that all service providers offering services to consumers and small businesses must be members of an approved ADR scheme such as CISAS or Ombudsman Services.

The schemes are free for customers to access and are designed to supplement an ISPs (internet service provider) or mobile operator’s own internal complaint procedure. The ADR process is typically the last line of defence for consumers, and generally only used when a dispute has gone unresolved for 6-8 weeks.

This new review by Ofcom will consider whether consumers and small businesses are receiving fair and consistent outcomes from the ADR procedures. The regulator will do this by looking closely at three main areas. 

The first area is examining the consumer access to ADR. Ofcom will look if customers are able to take their complaint to ADR after eight weeks, or if the complaint has reached a deadlock to see if these rules are working effectively for consumers. 

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Next the regulator will look at the consumer experience of the different schemes. It will consider whether consumers are receiving accessible and fair services and different levels of engagement from submitting the case to receiving a decision. 

Finally, Ofcom will monitor the performance of ADR schemes on an ongoing basis by comparing them to key performance indicators (KPIs) set by the regulator. Ofcom will look to see whether changes should be made to the schemes or KPIs to incentivise better outcomes. 

The regulator is now accepting input and comments on the scope of its review, including any additional issues it should take into account. The feedback period will remain open until the 10th of January 2024.