On March 20, 2025, the EU’s Online Dispute Resolution (ODR) platform will cease accepting complaints, and by July 20, 2025, it will be completely shut down. Established in 2016, the platform was designed to facilitate dispute resolution between consumers and businesses arising from online transactions. The system was intended to provide a streamlined, digital arbitration process through an interactive website.
With the elimination of the ODR platform, online retailers must update their terms and conditions. Failure to comply could result in fines of up to 10% of annual revenue, warns Joanna DomoĊ-Kulas, Legal Advisor at Causa Finita Szczepanek & Partners Law Firm.
A Failed EU Initiative
Launched in 2016, the ODR platform was envisioned as a modern, innovative solution for online consumer disputes. While similar arbitration platforms in individual EU countries, including Poland, have seen success, the EU-wide system failed to gain traction.
The numbers tell the story:
- The platform attracted nearly 3 million visitors per year
- However, it processed fewer than 200 cases annually
The primary reasons for the platformâs failure include:
- Lack of proper promotion across EU member states
- Existing national-level solutions, such as consumer ombudsmen or local online arbitration services
Recognizing the ineffectiveness of the project, EU authorities decided to discontinue the platform.
- March 20, 2025 â The platform will stop accepting new complaints
- July 20, 2025 â The platform will be completely deactivated
Potential Legal Risks for Online Retailers
Although the platform is shutting down, the burden now shifts to online businesses. When the ODR system was introduced, e-commerce companies were legally required to include a link to the platform in their terms and conditions. Many online stores have since incorporated clauses referencing ODR as a dispute resolution option.
However, after July 2025, these clauses will become outdated and misleadingâposing legal risks for retailers.
Failure to Update Terms & Conditions Could Lead to Fines of Up to 10% of Revenue
Leaving outdated references to ODR in terms and conditions could expose businesses to consumer protection violations.
- Consumer rights include access to accurate information.
- Listing a defunct dispute resolution platform could be interpreted as misleading consumers.
In the worst-case scenario, the Office of Competition and Consumer Protection (UOKiK) could:
- Initiate administrative proceedings against a company
- Issue an order to remove misleading clauses
- Impose financial penalties of up to 10% of the company’s previous yearâs turnover
Notably, these fines can be imposed even for unintentional violationsâmeaning that simply forgetting to update website policies could result in serious financial consequences.
How to Avoid Legal Issues
To prevent unnecessary legal trouble, businesses should:
- Update their terms and conditions before March 20, 2025
- Notify consumers that the ODR platform will:
- Stop accepting complaints after March 20, 2025
- Cease operations completely on July 20, 2025
Ignoring these changes and hoping that consumer protection authorities overlook outdated policies is a risky strategy.
- Consumers themselves may flag non-compliant websites
- Competitors or legal firms looking for litigation opportunities could exploit these violations
Similar cases have occurred in the past, proving that even minor compliance oversights can lead to costly disputes.
Key Takeaways for Online Businesses
- The EU ODR platform will shut down permanently on July 20, 2025
- E-commerce companies must remove outdated ODR references from their terms and conditions
- Failure to comply could lead to penalties of up to 10% of annual revenue
- Updating policies before March 20, 2025, is the safest approach
With consumer rights under greater scrutiny, businesses must ensure that all customer-facing policies remain accurate and up-to-date.
Source: CEO.com.pl
