Out-of-court dispute settlement bodies

Out-of-court dispute settlement bodies under the DSA (ODS bodies) allow users of online platforms to challenge decisions made by platforms without having to go directly to court.

In Luxembourg, this status is awarded, upon request, by the Competition Authority, as the national coordinator for digital services.

Who is concerned?

Users of online platforms

Any user of an online platform can appeal directly to the platform against its decision or lack of decision concerning:

  • The removal of allegedly illegal content or the restriction of its access and visibility;
  • The suspension or termination, in whole or in part, of the provision of the service to a user;
  • The suspension or deletion of a user's account;
  • The suspension, deletion or restriction of the user's ability to monetise the content they provide.

Following or alongside their appeal, users who disagree with the online platform's decision may contest it before an out-of-court dispute settlement body (ODS body) certified either by the Competition Authority or by another European digital services coordinator.

Out-of-court dispute settlement bodies

Certified ODS bodies are entities recognised for their ability to to independently and impartially handle disputes arising from the application of the provisions of the DSA.

Medium-sized and large online platforms

Providers of medium-sized or large online platforms must cooperate with certified ODS bodies to resolve disputes..

 

Competition Authority

The Competition Authority entrusts the analysis of certification applications to its Online Platforms Department in order to verify compliance with the prerequisites before certifying ODS bodies.

What are the prerequisites?

Users of online platforms

Users who resort to the services of an out-of-court dispute settlement body under the DSA (ODS body) must commit in good faith to resolving the dispute.

Out-of-court dispute settlement bodies

To obtain certification, ODS bodies must demonstrate :

  • their impartiality and independence, including financial independence, from both online platforms and users;
  • the expertise necessary to handle disputes relating to platform decisions (for one or more types of illegal content or concerning the application of the terms and conditions of one or more types of online platforms);
  • a method of remuneration that is not linked to the outcome of the dispute, in order to avoid any conflict of interest;
  • an easily accessible out-of-court dispute resolution process;
  • its ability to resolve disputes quickly, efficiently and economically, in at least one of the official languages of the European Union;  
  • clear, fair, public and accessible rules of procedure that comply with the applicable legislation.

Certification is issued by the national digital services coordinator of the country in which the body is established, for a renewable maximum period of five years.

The Competition Authority may revoke it if it finds that the entity no longer meets the necessary requirements.

Online platforms

Online platforms must provide clear, easily understandable and accessible information on the possibilities for out-of-court dispute resolution.

If a user resorts to the services of an ODS body, the online platform concerned must engage in good faith to resolve the dispute.

Role of Out-of-court Dispute Settlement bodies under the DSA

ODS bodies under the DSA must:

  • inform the user and the online platform concerned of the costs or calculation methods for costs before the dispute resolution process begins;
  • analyse the situation and help the parties resolve the dispute;
  • issue a decision within a reasonable time and no later than 90 days after receiving the complaint.

Once a year, the ODS body shall submit a report on its operations to the Digital Services Coordinator who certified it, specifying at least:

  • the number of disputes received,
  • information on the outcome of these disputes,
  • the average time required to resolve them, and
  • any shortcomings or difficulties encountered.

The Digital Services Coordinator may request additional information.

Breakdown of costs

If the out-of-court dispute settlement (ODS) body rules in favour of the user, the online platform shall bear all costs charged by the ODS and reimburse the user for any other reasonable expenses incurred in connection with the settlement of the dispute.

If the ODS body rules in favour of the online platform, the user shall not be required to reimburse the online platform's costs or expenses, unless the ADR body finds that the user has acted in bad faith.

Certified Out-of-court Dispute Settlement bodies

List of certified Out-of-court Dispute Settlement bodies in the EU

The European Commission keeps an up-to-date list of all certified Out-of-court Dispute Settlement bodies within the European Union.

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