Guide
Handle customer complaints and disputes
Set up an effective complaint handling process and understand your obligations around Alternative Dispute Resolution (ADR). Online traders must signpost consumers to a certified ADR provider.
Every retailer should have a clear, accessible process for handling customer complaints. Beyond being good business practice, the ADR for Consumer Disputes Regulations 2015 require all traders to signpost consumers to an ADR provider when a complaint cannot be resolved internally. Online traders have additional obligations. The DMCC Act 2024 strengthens CMA expectations around complaint handling and gives the CMA direct enforcement powers where poor complaint handling forms part of a pattern of unfair trading.
How complaint handling connects to enforcement
Under the DMCC Act 2024, the CMA can consider how a business handles complaints as part of its assessment of whether unfair commercial practices are taking place. A pattern of ignoring complaints, making it difficult for consumers to complain, or failing to honour valid complaint outcomes can contribute to an enforcement finding. Good complaint handling is not just customer service; it is a compliance requirement.
What to do next
Once your complaints procedure is in place:
- Review your consumer rights and returns process to ensure complaints about faulty goods are handled correctly
- If you sell online, check your distance selling compliance for additional requirements
- Consider whether your terms and conditions are fair and transparent, as unfair terms are a common source of complaints