Retail & Consumer Goods

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.

UK-wide
Guide summary

Set up a clear complaints process for customers. Train staff, keep a complaints log, and tell customers about ADR if you cannot resolve their complaint. Online sellers must also link to the ODR platform.

  • Create a complaints policy with response times
  • Train staff on handling complaints
  • Keep a log of all complaints
  • Tell customers about ADR when you cannot resolve
  • Online sellers must link to the ODR platform
  • Review complaints data to improve
  • CMA can fine up to 10% of turnover for poor complaints handling
  • Acknowledge complaints within 2 working days
  • Aim to resolve within 14 days
On this page
UK-wide

Related guides in Consumer Rights

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.

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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.

  5. 5

    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

Official guidance and ADR resources