The Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026

Published: Wed 11th Mar 26

These Statutory Instruments, made under the Digital Markets, Competition and Consumers Act 2024, formally confer specific regulatory functions related to Alternative Dispute Resolution (ADR) for consumer contract disputes onto the Chartered Trading Standards Institute (CTSI), effective April 6, 2026.

The Regulations detail the procedures the CTSI must follow when approving fee provisions, handling accreditation applications, suspending or revoking accreditations, enforcing compliance, and disclosing relevant information to consumers, alongside establishing mandatory quarterly and annual reporting requirements to the Secretary of State and the public.

Arguments For

Establishing a clear, designated body (CTSI) to manage key regulatory functions concerning accredited Alternative Dispute Resolution (ADR) providers, enhancing oversight and consumer protection.
Ensuring detailed transparency by mandating specific information requirements (Schedules 1, 2, 3) necessary for the CTSI to approve fee structures, grant/vary/revoke accreditation, and manage enforcement actions.
Implementing robust reporting mechanisms (quarterly and annual reports) to inform the Secretary of State and the public about the performance, quality, and systemic issues within the ADR framework.
Providing operational clarity regarding communication methods, such as requiring written notice on a 'durable medium' for formal decisions, ensuring accountability.

Arguments Against

Centralizing significant regulatory power over ADR providers within the CTSI may introduce administrative burdens and compliance costs for these providers when applying for accreditation or managing fee approvals.
The requirement for detailed fee justification (Schedule 1) could potentially limit the flexibility of ADR providers in adjusting costs necessary to maintain service quality or cover operational expenses.
Mandating the collection and publication of extensive operational data (Schedule 2 and 4), even if for oversight, could raise concerns regarding the confidentiality or competitive sensitivity of internal ADR procedures.
The regulations hinge on the successful implementation of wider framework provisions within the overarching Digital Markets, Competition and Consumers Act 2024, meaning any delays or issues in the main Act could affect the operational effectiveness of these conferred functions.

STATUTORY INSTRUMENTS

2026 No. 259

CONSUMER PROTECTION

The Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026

| Made - - | - 9th March 2026 | |---|---| | Coming into force | - 6th April 2026 |

This section introduces the instrument as a Statutory Instrument numbered 2026 No. 259, falling under the Consumer Protection category.

It specifies that the Regulations were made on March 9, 2026, and will officially come into force on April 6, 2026, establishing the timeline for their legal effect.

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 307(1) to (3) and 337(1) of the Digital Markets, Competition and Consumers Act 2024( 1 ).

In accordance with sections 307(6) and 337(3) of that Act, a draft of these Regulations has been laid before and approved by a resolution of each House of Parliament.

The Secretary of State enacted these Regulations using powers granted under sections 307(1) to (3) and 337(1) of the Digital Markets, Competition and Consumers Act 2024.

Before enactment, a draft of the Regulations was presented to and formally approved by both Houses of Parliament, fulfilling necessary antecedent parliamentary scrutiny requirements.

Citation, commencement and extent

-(1) These Regulations may be cited as the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026.

(2) These Regulations come into force on 6th April 2026.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Regulation 1 provides the official short title for these rules.

It confirms the commencement date as April 6, 2026, which is when they become legally effective. Furthermore, it establishes that the Regulations apply across the entirety of the United Kingdom: England, Wales, Scotland, and Northern Ireland.

Interpretation

In these Regulations-

'the Act' means the Digital Markets, Competition and Consumers Act 2024;

'the CTSI' means the Chartered Trading Standards Institute, a company incorporated by Royal Charter with registered number RC000879;

'durable medium' means paper or email, or any other medium that-

(a) allows information to be addressed to the recipient;
(b) enables the recipient to store the information in a way accessible for future reference for a period that is long enough for the purposes of the information; and
(c) allows the unchanged reproduction of the information stored.

Regulation 2 defines key terms used throughout the document to ensure consistent interpretation. 'The Act' refers to the Digital Markets, Competition and Consumers Act 2024. 'The CTSI' is defined specifically as the Chartered Trading Standards Institute.

A 'durable medium' is defined as a format, such as paper or email, that guarantees the recipient can receive, store, and later reproduce the information without alteration, ensuring lasting accessibility.

Conferral of functions

The exercise of the functions under the following provisions of the Act is conferred on the CTSI-

(a) section 294(2)(b) (function of approving fees provisions) (but see regulation 4);
(b) section 296 (functions relating to applications for accreditation or variation of an accreditation) (but see regulations 5 and 6);
(c) section 297 (functions relating to determination of applications);
(d) section 298 (functions relating to revocation or suspension of accreditations etc) (but see regulation 7);
(e) section 299(1) (fees payable by accredited ADR providers), so far as relating to the function of receiving fees;
(f) section 302 (functions relating to enforcement notices) (but see regulation 8);
(g) section 304 (functions relating to ADR information directions); and
(h) section 305 (functions relating to disclosure of ADR information) (but see regulations 9 and 10).

Regulation 3 mandates the transfer of numerous specific regulatory powers regarding Alternative Dispute Resolution (ADR) from the primary Act to the CTSI. These conferred powers cover approving fee structures, managing accreditation and variation applications, formally determining applications, handling revocations, receiving specific fees, and issuing and disclosing information directives.

Subsequent regulations specify limitations or procedural requirements for exercising many of these functions.

Approval of fees provisions

When exercising the function of approving provisions for charging fees to consumers under section 294(2)(b) of the Act, the CTSI must-

(a) require that the information in Schedule 1 is provided by the accredited ADR provider( 2 );
(b) consider that information before deciding whether to approve the provisions;
(c) give notice in writing on a durable medium to the accredited ADR provider-
(i) of its decision; and
(ii) the reasons for its decision.

Regulation 4 sets the process for the CTSI when approving any fees that accredited ADR providers plan to charge consumers, as per section 294(2)(b) of the Act.

The CTSI must demand the specific information detailed in Schedule 1 from the provider.

It must review this submitted information before making an approval decision and must formally communicate its final decision, along with the justification for that decision, to the provider in writing using a durable medium.

Application for accreditation

When exercising the function of determining the procedure to be followed for an application for accreditation to carry out ADR( 3 ) under section 296(6) and (7)(d) of the Act, the CTSI must require that the applicant includes the information in Schedule 2 in their application in relation to-

(a) the applicant for ADR accreditation; and
(b) any other person that the applicant for ADR accreditation makes special ADR arrangements( 4 ) with.

Regulation 5 governs the procedure for determining accreditation applications under section 296 of the Act.

The CTSI must ensure that applicants include all necessary details listed in Schedule 2 within their submission.

This requirement applies not only to the primary applicant seeking ADR accreditation but also to any third party with whom the applicant has established special ADR arrangements.

Publication of application for accreditation or variation procedures

When exercising the function of publishing the procedures to be followed for an application for accreditation and an application for variation of accreditation under section 296(9) of the Act, the CTSI must publish such procedures on its website.

Regulation 6 directs the CTSI, when fulfilling its duty under section 296(9) of the Act to publish the administrative procedures, to post these specific procedures for both initial accreditation applications and applications seeking variation of existing accreditation directly onto its official website.

Revocation or suspension of accreditation

When exercising the function of revoking or suspending an accreditation to carry out ADR under section 298(2), (4)(b) or (4)(c) of the Act, the CTSI must-

(a) require that the information in Schedule 3 is provided by the ADR provider( 5 ) in relation to- (i) the ADR provider; and (ii) any other person that the ADR provider makes special ADR arrangements with; and (b) in relation to functions under section 298(4)(b) or (c), inform the Secretary of State in writing on a durable medium of any ADR provider that the CTSI considers meets one or more of the conditions in section 298(3) of the Act.

Regulation 7 stipulates the actions the CTSI must take when deciding to revoke or suspend an ADR accreditation based on powers under section 298 of the Act.

It requires the CTSI to obtain information detailed in Schedule 3 concerning the provider and its special arrangements, especially regarding outstanding cases.

Furthermore, for revocations/suspensions under specific subsections, the CTSI must notify the Secretary of State in writing if the provider meets criteria listed in section 298(3).

Publication of enforcement notices

Before exercising the function of publishing information about enforcement notices under section 302(9) of the Act, the CTSI must have regard to the benefit of publishing information concerning systemic issues or other issues of public interest.

Regulation 8 guides the CTSI's decision-making process when it considers publishing details regarding enforcement notices issued to ADR providers under section 302(9).

The CTSI must weigh the potential public benefit that arises from disclosing information about systemic problems or other matters of public interest before deciding on publication.

Disclosure of ADR information

When exercising the function of publishing information for the purpose of providing information to consumers under section 305(2) of the Act, the CTSI must-

(a) include the information in Schedule 2 in respect of-
(i) each accredited ADR provider; and
(ii) each exempt ADR provider( 6 ); and
(b) publish such information on its website.

Regulation 9 outlines the CTSI’s obligations when publishing information to aid consumers, as authorized by section 305(2) of the Act.

This involves including the specific details listed in Schedule 2, not only for providers that have received accreditation but also for those designated as exempt ADR providers.

This consumer information must be made publicly available on the CTSI's website.

Duty to provide reports

-(1) The CTSI must prepare-

(a) a report ('the quarterly report') containing the information in Schedule 4 relating to each calendar quarter;
(b) a report ('the end of year report') containing the information in Schedule 4 relating to each financial year.

(2) The quarterly report must be provided no later than two weeks after the end of each calendar quarter to the Secretary of State in writing on a durable medium.

(3) The end of year report must be provided no later than four weeks after the end of each financial year to-

(a) the Secretary of State in writing on a durable medium; and
(b) consumers, by publication on the CTSI's website.

(4) In this regulation- 'calendar quarter' means each of the following periods in any year-

(a) 1st January to 31st March;
(b) 1st April to 30th June;
(c) 1st July to 30th September;
(d) 1st October to 31st December;

'financial year' means-

(a) the period beginning with the day on which these Regulations come into force and ending with 31st March in the following year; and
(b) each successive period of 12 months beginning with 1st April and ending with 31st March in the following year.

Regulation 10 imposes documentary duties on the CTSI, requiring it to produce a 'quarterly report' and an 'end of year report,' both containing data specified in Schedule 4.

The quarterly report must be sent to the Secretary of State within two weeks of the quarter's end on a durable medium.

The end of year report is due to the Secretary of State within four weeks and must simultaneously be published for consumers on the CTSI website. The regulation also precisely defines the terms 'calendar quarter' and sets the calculation method for the initial and subsequent financial years.

Schedule 1

Approval of fees provisions

The information required by regulation 4 is-
(a) the proposed fee;
(b) the reasons for charging fees to consumers;
(c) an explanation of how the revenue from fees will be used; and
(d) proposed mitigating actions or circumstances that ensure charging fees-
(i) improves the availability of ADR services for consumers; and
(ii) does not deter access to its ADR services.

Schedule 1 details the required information providers must submit to the CTSI when seeking approval to pass fees onto consumers (Regulation 4).

This includes specifying the proposed fee amount, the justification for charging consumers, how the collected revenue will be spent, and outlining specific actions to ensure the fees enhance service availability without discouraging consumer use of the ADR service.

Schedule 2

Regulations 5 and 9

Application for accreditation and disclosure of ADR information

The information required by regulations 5 and 9 is-
(a) the name, contact details and website address of the ADR provider;
(b) the kinds of ADR carried out, including the possible outcomes of each kind;
(c) the types of consumer contract disputes the ADR provider deals with;
(d) the sectors and categories of consumer contract disputes covered by the ADR provider;
(e) the procedures, rules, requirements or practices relating to the carrying out of ADR, including-
(i) any time limits for referring disputes for ADR;
(ii) any conditions or other requirements to be met by either (or both) of the parties before, or while, ADR is being carried out; and
(iii) whether ADR can be conducted orally or in writing;
(f) the fees or costs payable by either party to a consumer contract dispute that is referred for ADR;
(g) the language in which consumer contract disputes can be submitted to the ADR provider and in which ADR can be carried out;
(h) whether the outcome of ADR is binding;
(i) the grounds on which the ADR provider may refuse to deal with a given consumer contract dispute; and
(j) the process for handling complaints.

Schedule 2 specifies the comprehensive data set required both for initial accreditation applications (Regulation 5) and for public disclosure to consumers (Regulation 9).

This data covers basic identification, the scope of disputes handled (types and sectors), detailed procedural information (including time limits, prerequisite conditions, format of proceedings), costs involved, language accessibility, whether outcomes are binding, grounds for refusal, and the complaint handling process.

Schedule 3

Revocation or suspension of accreditation

Regulation 4

Regulation 7

(a) the details of any outstanding ADR processes;
(b) an estimation of the period of time needed to finalise or transfer to another ADR provider any outstanding ADR process;
(c) where an outstanding ADR process is being transferred to another ADR provider, the name, contact details and website address of that other ADR provider; and
(d) a forwarding address for invoicing any outstanding fees payable to the CTSI.

Schedule 3 lists the critical information the CTSI must obtain from an ADR provider before suspending or revoking its accreditation (Regulation 7).

This focuses immediately on continuity of service, requiring details on all open cases, estimated completion/transfer timelines, identification of any successor provider handling transfers, and a contact point for settling outstanding invoices owed to the CTSI.

Interpretation

In this Schedule-

'outstanding ADR process' means a consumer contract dispute accepted by the ADR provider for carrying out ADR where-

(a) a final determination has not been reached; or
(b) a determination may be subject to appeal, decisions or settlement as part of the ADR process.

This interpretive note within Schedule 3 clarifies that an 'outstanding ADR process' includes any consumer dispute accepted by the provider where the final decision has not yet been made, or where the existing decision remains vulnerable to appeal or further settlement discussions.

Schedule 4

Information for reports

The information that must be provided in the reports required by regulation 10 is-
(a) in relation to approval of provisions to charge fees to consumers under section 294(2)(b) of the Act- (i) the number of requests received from accredited ADR providers; (ii) the number of such requests that were approved or rejected; and (iii) an outline of the reasons considered in approving or rejecting such requests; (b) the number of ADR providers that have applied for accreditation and, in accordance with section 297(2)(b), have been- (i) granted the accreditation applied for; (ii) granted a more limited accreditation; and (iii) refused the application; (c) the number of ADR providers that have applied for variation of accreditation and, in accordance with section 297(8)(b), have been- (i) granted the application; (ii) granted a variation of accreditation, but to a different extent than applied for; and (iii) refused the application; (d) the average period of time taken for determinations of- (i) accreditation under section 297 of the Act, calculated from the date of application under section 296(1) of the Act to the date a notice is given under section 297(2) (c) of the Act; and (ii) variations of accreditation under section 297 of the Act, calculated from the date of application under section 296(4) of the Act to the date a notice is given under section 297(8)(c) of the Act; (e) the average amount of fees paid- (i) for accreditation, under section 296(1)(b) of the Act; (ii) for variation of accreditation, under section 296(5) of the Act; and (iii) by accredited ADR providers, under section 299(1) of the Act; (f) the number of revocations of accreditation made under section 298(2) and (4)(c) of the Act; (g) in respect of revocations of accreditation made under section 298(4)(c) of the Act, details of the conditions under section 298(3) that the CTSI considers have been met in each case; (h) an evaluation of the operation of the system of accreditation under Chapter 4 of Part 4 of the Act based on information gathered from, and feedback received in relation to, the exercise of functions conferred under these Regulations and regulations made under section 303 of the Act; (i) an evaluation of the provision and quality of ADR carried out in the United Kingdom based on information gathered from, and feedback received in relation to, the exercise of functions conferred under these Regulations and regulations under section 303 of the Act; and (j) any other information that the CTSI considers relevant for the purpose of- (i) providing information to consumers; (ii) monitoring or evaluation of the operation of the system of accreditation under Chapter 4 of Part 4 of the Act; and (iii) monitoring or evaluation of the provision and quality of ADR carried out in the United Kingdom.

Schedule 4 specifies the required content for the mandatory quarterly and annual reports (Regulation 10).

This includes detailed statistics on fee approval requests, application outcomes (granting, limiting, or refusing accreditation/variation), average processing times for applications, the average fees charged and received, data on revocations, and evaluations of the overall accreditation system quality and operation across the UK. The CTSI may also include other relevant information for consumer guidance or monitoring purposes.

Regulation 10

9th March 2026

Kate Dearden Parliamentary Under-Secretary of State Department for Business and Trade

This concluding part of the schedule indicates that the reporting requirements detailed within apply to the reports mandated by Regulation 10.

It concludes with the date the instrument was formally made and the signature block showing Kate Dearden, Parliamentary Under-Secretary of State for the Department for Business and Trade, enacted the instrument on March 9, 2026.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations confer functions on the Chartered Trading Standards Institute ('the CTSI') in relation to alternative dispute resolution for consumer contract disputes under the Digital Markets, Competition and Consumers Act 2024 (c. 13) ('the Act'), and make provisions in connection with the conferral of those functions.

Regulation 3 sets out the functions conferred on the CTSI.

Regulation 4 provides that the information in Schedule 1 must be required from ADR providers who seek approval to charge fees to consumers. The CTSI is required to consider this information when making a decision, and give notice to the ADR provider of its decision and the reasons for the decision.

Regulation 5 provides that the information in Schedule 2 must be required from applicants for ADR accreditation.

Regulation 6 provides that the procedures for accreditation and variation of accreditation are to be published on the CTSI's website.

Regulation 7 provides that the information in Schedule 3 must be required from ADR providers when considering a revocation or suspension of accreditation. Regulation 7 also requires the CTSI to inform the Secretary of State of any ADR provider who meets one or more of the conditions in section 298(3) of the Act which may lead to a decision to suspend or revoke accreditation.

Regulation 8 requires the CTSI to have regard to the benefit of publishing information concerning systemic or other issues of public interest before publishing information on enforcement notices given to ADR providers.

Regulation 9 provides that the information in Schedule 2 must be published on the CTSI's website.

Regulation 10 provides that the information in Schedule 4 must be provided to the Secretary of State quarterly, in the form of a quarterly report, and annually, in the form of an end of year report. Regulation 10 also provides that end of year reports must be published on the CTSI's website.

An impact assessment has not been produced for these Regulations as no, or no significant, impact on the private, voluntary or public sectors is foreseen. An Explanatory Memorandum is published alongside these Regulations on www.legislation.gov.uk.

The Explanatory Note confirms the primary purpose: conferring powers on the CTSI regarding ADR under the 2024 Act and detailing connected provisions.

It briefly summarizes the role of each regulation: Regulation 3 lists the conferred functions; Regulation 4 details fee approval procedures requiring Schedule 1 data; Regulation 5 mandates Schedule 2 data for accreditation; Regulation 6 requires website publication of procedures.

Regulation 7 covers information needed for revocation decisions and required notification to the Secretary of State.

Regulation 8 guides the publication of enforcement notices based on public interest.

Regulation 9 mandates publishing Schedule 2 data for consumers.

Regulation 10 details the required quarterly and annual reporting structure via Schedules 4.

Finally, it notes that no significant impact assessment was deemed necessary for these specific regulations.

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