COMPLAINTS - WHAT INDEPENDENT HELP CAN I GET?

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Alternative Dispute Resolution (ADR)

Are there rules for ADR schemes?

What powers do ADR schemes have to help me?

Alternative Dispute Resolution (ADR)

Put simply, this is an alternative to taking the problem to court. Court costs, the effort involved and the inevitable delays have reduced access to the court system for many of us.   An alternative dispute resolution agency provides you with an easier, relatively quick, independent and effective way of settling the dispute. (In most cases the service is free to you; in some cases there is a lodgement fee.)   Alternate dispute resolution has also become popular with industry as it strives to self-regulate. Participating in an alternative dispute resolution scheme enables companies to hear and understand the problems their customers are facing. And, ideally, to take steps to fix those problems - in the company itself and industry-wide. (Some companies and industries do this better than others.)   Alternative dispute resolution is available to you after you have tried to sort the matter out with the company concerned and you can't get anywhere.

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Are there "rules" for alternative dispute resolution schemes?

(1) Benchmarks for Industry-based Customer Dispute Resolution Schemes

 

In 1997, the Federal Government issued a set of six benchmarks

for alternative dispute resolution schemes -

"Benchmarks for Industry-based Customer Dispute Resolution Schemes"

Dept of Industry, Science & Tourism, August 1997

 

accessibility	The scheme makes itself readily available to customers by promoting knowledge of its existence, being easy to use and having no cost barriers.
independence	The decision-making process and administration of the scheme are independent from scheme members.
fairness	The scheme produces decisions which are fair and seen to be fair by observing the principles of procedural fairness, by making decisions on the information before it and by having specific criteria upon which its decisions are based.
accountability	The scheme publicly accounts for its operations by publishing its determinations and information about complaints and highlighting any systemic industry problems.
efficiency	The scheme operates efficiently by keeping track of complaints, ensuring complaints are dealt with by the appropriate process or forum and regularly reviewing its performance.
effectiveness	The scheme is effective by having appropriate and comprehensive terms of reference and periodic independent reviews of its performance.

 

Some schemes operate according to these principles better than others.   Eg. some allow you to lodge your complaint over the phone, some prefer it in writing, and some are required by legislation to receive it in writing.   Some schemes issue regular public reports; others do not.   Some schemes have consumer representatives on their boards/councils; others have industry representatives on them only.   Greater questioning of the schemes by customers (about how they operate) may help to improve compliance with the benchmarks.

 

(2) Australian Standard on Complaints Handling   This standard (AS 4269) was issued in 1995. It addresses the essential elements of effective complaints handling and how these should be implemented. It is available from Standards Australia. (02) 9746 4700

 

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What powers do alternative dispute resolution schemes have to help me?

Be aware that the schemes/agencies do not all have the same powers.   Some of the dispute resolution schemes you will find through this site were set up specifically to take customer / consumer complaints. Industry Ombudsman schemes (eg. the Telecommunications Industry Ombudsman, the Banking Industry Ombudsman, the Energy and Water Ombudsman Victoria) and Code Administrators (eg. the Direct Selling Code of Practice Administrator) are in this group.   Statutory Ombudsmen and Government Consumer Affairs / Fair Trading agencies have both complaints handling and regulatory roles. Some Governments have also set up specific purpose complaints agencies for particular areas eg. the NSW Community Services Commission.   Yet other agencies are industry associations that as part of their role deal with complaints against their members, according to a code of conduct / practice / ethics.   Some can award you compensation (up to set $ limits). Some can discipline (eg. expel or de-register) members. Some can order that a corrective action be taken. Some can only negotiate on your behalf with the person/company you are complaining about.   This does not mean the scheme can not achieve a successful outcome for you, but the outcome may not be the one you were expecting when you first called.   It is a good idea to ring or email the scheme first to see what powers it has and what can be done to help you. Then, if this is not enough, you may need to take action in the Small Claims /Fair Trading tribunal in your state or territory, or even resort to legal action.

 

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