A significant knowledge gap persists among German consumers regarding accessible avenues for resolving disputes with businesses outside of formal court proceedings, a new survey reveals. Commissioned by the Federation of German Consumer Organisations (VZBV) and reported by Funke-Mediengruppe newspapers, the study highlights that only approximately one-third (36 percent) of consumers are aware of independent arbitration services as a means to settle disagreements.
The findings, based on an October 2025 online survey of 1,000 internet users aged 16 and over conducted by eye square, underscore a growing disconnect between consumer rights and public awareness. Between January and October 2025 alone, consumer centers across Germany received over 35,000 complaints relating to warranty issues and retraction rights – a volume indicative of widespread frustration with business practices.
“Arbitration offers a streamlined and cost-free alternative to litigation” stated Meret Sophie Noll, VZBV’s expert on dispute resolution. However, she emphasized the critical lack of consumer familiarity and corporate participation. Currently, only companies within the energy, aviation and postal sectors are legally mandated to engage in this process, leaving substantial gaps in consumer protection. Voluntary participation in other sectors, such as insurance, remains dependent on association memberships, demonstrating a patchy and inconsistent commitment from the business community.
The survey’s data reveals a significant appetite for broader systemic change. Nearly three-quarters (73 percent) of respondents expressed support for mandatory arbitration participation for all businesses, even if it resulted in outcomes unfavorable to them. This suggests a growing public desire for a more equitable and accessible dispute resolution landscape, moving beyond reliance on potentially costly and complex legal battles.
Noll’s call for action isn’t merely about raising awareness; she’s advocating for legislative intervention. The current system, characterized by its fragmented obligations and reliance on voluntary compliance, is demonstrably failing to provide adequate redress for consumers. Specifically, she stressed the imperative to legally mandate participation from key sectors, most notably the rapidly expanding online retail industry. The lack of mandatory arbitration in online commerce, critics argue, contributes to a power imbalance and enables questionable business practices, leaving consumers vulnerable and often without recourse. The VZBV’s findings signal a need for significant political consideration and reform to bolster consumer protections and ensure a level playing field in the marketplace.
