Every retailer should have a clear, accessible process for handling customer complaints. Beyond being good business practice, section 308 of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) requires you, when you respond to a consumer complaint about a consumer contract, to tell the consumer about any ADR or other arrangement available if they are dissatisfied with your answer. That duty took effect on 6 April 2026, replacing the signposting requirement in the ADR for Consumer Disputes Regulations 2015, which were revoked on the same date. The DMCC Act also gives the CMA direct enforcement powers where poor complaint handling forms part of a pattern of unfair trading.
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1. Create an internal complaints procedure
Write a clear complaints policy that covers how customers can complain (in-store, phone, email, online form), target response times (acknowledge within 2 working days, resolve within 14 days where possible), who handles complaints and their authority to offer remedies, and how to escalate if the initial response does not resolve the issue. Make this policy available on your website, in-store, and on receipts.
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2. Train staff on complaint handling
All customer-facing staff need training on your complaints procedure, consumer rights basics (refund, repair, replacement rights under the Consumer Rights Act 2015), when to escalate to a manager, and how to record complaints consistently. Keep training records as evidence of due diligence.
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3. Set up a complaints log
Record every complaint with date received, customer details, nature of complaint, actions taken, outcome, and time to resolution. This log serves two purposes: it helps you identify recurring problems and demonstrates to enforcers that you take complaints seriously.
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4. Identify and signpost to an accredited ADR provider
When a complaint cannot be resolved internally, tell the consumer about an ADR provider they can use and whether you are willing or required to take part. From 6 April 2026 the DMCC Act 2024 ADR regime replaced the ADR Regulations 2015 — consumer ADR providers must now be accredited (or exempt) under the new framework, so check your provider's accreditation. Using ADR remains voluntary for most retailers unless a scheme or sector rule requires it.
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5. Review and improve regularly
Analyse your complaints log quarterly. Look for patterns that suggest systemic problems with products, suppliers, or processes. Use complaint data to improve your products, services, and staff training. Good complaint handling reduces enforcement risk and builds customer loyalty.
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
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.ukOfficial guidance
ADR for consumer disputes guidance (opens in a new tab)
Official guidance on ADR obligations for traders
Publication · GOV.UK
Certified ADR providers (opens in a new tab)
Find a Trading Standards approved ADR provider
www.tradingstandards.uk
Competition and Markets Authority (opens in a new tab)
CMA enforcement guidance and latest consultations
CMA
Online Dispute Resolution platform (opens in a new tab)
ec.europa.eu