The Draft Law on Out-of-Court Resolution of Consumer Disputes (ODR) aligns with Ukraine's commitments under the EU–Ukraine Association Agreement and brings the country a step closer to European legal and consumer protection standards.
Why the Law Matters
This legislative initiative aims to create an accessible, fast, and efficient mechanism for resolving disputes between consumers and businesses—both in domestic and cross-border transactions. The system is modeled on Directive 2013/11/EU, which has been successfully implemented across the European Union for over a decade.
Key Provisions of the Draft Law
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Creation of a Consumer Protection Network:
A structured network of authorized bodies will be established, including:-
The State Consumer Protection Service as the national contact point;
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Competent state bodies;
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Public consumer associations and qualified legal entities.
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Out-of-Court Settlement Procedures:
The draft law envisions a clearly regulated procedure for resolving:-
Domestic disputes involving Ukrainian businesses and consumers;
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Cross-border disputes, including online purchases from foreign companies.
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Binding Requirements:
The law sets requirements for:-
Accreditation and operation of dispute resolution bodies;
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Impartiality, independence, and transparency;
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Timely and cost-effective processing (with timelines and procedural standards).
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Appeals and Enforcement:
Mechanisms will be introduced to ensure that decisions of consumer protection bodies can be appealed and enforced. -
No Minimum Value Thresholds:
Consumers will have access to the ODR mechanism regardless of the monetary value of their claim.
Proposed Amendments to the Consumer Protection Law
The draft law also suggests notable changes to the Law of Ukraine "On Consumer Protection", such as:
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Return of Goods of Proper Quality:
Consumers will be able to return or exchange products even if they are of proper quality—if such terms are explicitly defined in the contract. -
Clarification of Exceptions:
A clear list of transactions where withdrawal from the contract is not permitted will be added, including:-
Emergency or urgent services;
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Customized products;
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Digital content not supplied on a tangible medium.
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What Businesses Should Prepare For
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Adapting Contracts and Return Policies:
Businesses will need to update standard contracts and ensure clear communication regarding return conditions and consumer rights. -
Compliance With New ODR Standards:
Companies—especially in e-commerce and cross-border trade—must prepare to participate in the out-of-court resolution system, including possibly registering with accredited dispute resolution bodies. -
Transparency and Record-Keeping:
Businesses will be required to maintain documentation and respond within defined timelines during the dispute resolution process.
What It Means for Consumers
For consumers, this law offers:
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Free or low-cost resolution of disputes without going to court;
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Faster access to justice, particularly in small claims or online shopping issues;
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Greater protection in cross-border transactions, helping restore trust in international e-commerce.
“This is a major step toward harmonizing Ukraine’s consumer rights framework with European standards. We invite businesses, civil society, and legal professionals to actively participate in shaping this reform,” — Committee on Economic Development, Verkhovna Rada
Final Thoughts
The draft law represents a progressive shift toward a more consumer-friendly business environment in Ukraine. By reducing the cost and time of resolving disputes, both businesses and customers stand to benefit. For foreign investors and e-commerce platforms, this move also enhances legal predictability and trust, crucial for the post-war economic recovery.
Public consultations are ongoing, and stakeholders are encouraged to engage in shaping this impactful legislative reform.
