Free consumer arbitration guaranteed in new national law

The new law is the enactment of a European Union directive which requires all consumers resident in member States to have the right to resolve issues relating to goods and services purchased without cost and without going through the courts.

All consumer disputes must be resolved within 90 days of the company receiving the complaint.

Spain's government has removed the lower limit of claims, previously €30, and the upper limit, which was €10,000, and consumers no longer have to pay a fee, which used to be set at a maximum of €30.

The legislation also prevents companies from insisting on their own arbitration services, or one of their choice, being used.

Goods and services purchased by residents in EU countries from companies based in any EU member State, even if the two countries are different, are covered, as are purchases made in person, by telephone, mail order, or internet.

Financial services and airlines are now obliged by law to participate in the arbitration process if a dispute cannot be resolved in-house, and are not permitted to force consumers to go straight to the courts at their own cost.

Resolutions will be binding and enforced by the relevant State bodies.

In Spain, these include the ministry of public works for airlines, the Bank of Spain, the economy ministry's General Directorate of Insurance and its Pension Fund, and the National Values Market Commission (CNMV) for financial services.