The annual report of the National Consumer Ombudsman Service (SNMC), published on Monday 27 June, shows that 20% of the requests for out-of-court settlement of a consumer dispute with the entity concerned the construction sector in 2021. This is seven times more than in 2020.

In 2021, the SNMC dealt with 186 requests falling within its remit (out of 403 requests made)--a decrease of 2.1% compared to 2020 (190 requests). Out of these, 37 files concerned a dispute in the field of construction, which had only recorded five cases a year earlier.

“Following the multiple restrictions during the last two years due to the pandemic, delays have accumulated in the construction sector, which has not been helped by the consequences of the war in Ukraine, which has weighed on the delivery chain,” said Claude Fellens, the consumer ombudsman, about this increase.

Online commerce, where complaints had exploded in 2020 because of the pandemic, has returned to a lower level with 27 requests in 2021 compared to 46 in 2020. This decrease can be explained by a better knowledge of good practices in terms of online commerce on the part of the consumer, but also of companies.

“The consumer is perhaps more attentive indeed. Companies that sell on the internet have also set up efficient and very effective after-sales services. Moreover, e-commerce is strictly regulated by the consumer code, in particular with the 14-day withdrawal period,” said Fellens.

Fewer requests for mediation

In total, 403 requests were sent to the consumer ombudsman in 2021, which is a decrease of almost 40% compared to 2020. However, a large proportion of these requests were also redirected to more competent bodies depending on the case. More than a third (37%) of the requests were redirected to the Luxembourg Regulatory Institute (ILR), 17.7% to financial sector watchdog CSSF and 45.3% to the insurance ombudsman established at the Aca.

The annual report of the consumer ombudsman also shows a better participation rate in mediation. By increasing from 49.4% to 62.9%, companies seem to have understood the interest of an amicable settlement rather than a long procedure before the Luxembourg courts. Moreover, the SNMC has a success rate of 91.5%--the percentage of cases that ended in an agreement between the parties putting an end to the dispute.

“At the end of a dispute, we aim for the company to receive credit for a success. The consumer must say to themselves that despite the problem, the company was willing to find a solution with the ultimate goal of gaining the consumer’s trust, who will remain a customer,” the ombudsman said.

“In 2021, we saw some nervousness from people because of the pandemic. Now we are happy to be able to do face-to-face mediation again. Dispute resolution needs the emotional fibre to find an agreement between two parties who have previously exchanged only to reach a deadlock. With mediation, we put in place another form of communication between the two parties in order to reach a solution, and the face-to-face meeting without a mask is what is needed to be able to work comfortably.”

This story was first published in French on . It has been translated and edited for Delano.