How frustrating! You buy a product and it breaks. You try to return it or have the company fix it, but don't succeed. You talk with the salesperson, speak with the manager, and write letters to the company, and still you're not satisfied with the company's response.
Maybe it's time to try an alternative dispute resolution (ADR) program — an option that businesses, private organizations, and government agencies use. Dispute resolution programs can be quicker, cheaper, and less stressful than going to court.
The two most popular types of dispute resolution are mediation and arbitration. In mediation, a neutral third party — a mediator — helps you and the other party try to resolve the problem through facilitated dialogue. However, it's up to you and the other party to reach an agreement.
Arbitration is less formal than court, though you and the other party may appear at hearings, present evidence, or call and question each other's witnesses. Unlike mediation, an arbitrator or panel makes a decision or award once you've presented your case. The decision may be legally binding.
The following organizations can help you locate programs in your area:
Contact and compare several ADR programs to find the one best suited to your needs.
One of the benefits of ADR is that disputes are usually resolved more quickly than a court proceeding.
The program will progress more easily and effectively if you are well prepared.
If a dispute resolution program does not settle the problem, you may want to sue. If the right to sue is important to you, check contracts carefully — before you sign — to see if they waive your right to sue. If you enter into an arbitration program that's binding on both parties, you've given up your right to sue. Agreements to resolve disputes through binding arbitration are generally enforceable, even if you did not sign a contract and the agreement to arbitrate is on the product packaging. Time constraints also can be a problem. Know the jurisdiction's time limitations on filing a suit.
The Consumer's Resource Handbook offers tips on buying products and services, and lists contacts for information and assistance. For a free copy, write: Federal Citizen Information Center, Pueblo, Colorado 81009.
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.