The alternative dispute resolution outside the regular court system turned out to be so successful in Turkey that following up on labor cases, the mediation procedure for disputes arising from consumer disputes has also been made mandatory as of 28.07.2020.
This means that in a consumer dispute that exceeds the value of 11,330.00 TL (threshold amount determined for 2021) or that cannot be determined with money, a mediator must first be engaged before a lawsuit can be opened at the consumer court.
The scope of mediation in consumer disputes?
Firstly, there must be a consumer purchase or service provision as defined by the Consumer Act. This could include a monetary claim, compensation or a complaint from a purchase, delivery or service. The decisive factor is that one of the parties is a consumer and the other party is acting commercially or with profit making purposes.
A rule is not a rule, if there is no exception. The following disputes do not fall under the scope of the mandatory mediation in consumer disputes;
The role of the mediator
The mediation process is confidential. Negotiations conducted during this process cannot be made public without the consent of the parties. Negotiations and negotiating evidence cannot be used as evidence in court unless otherwise agreed. The mediator cannot be summoned or heard as a witness.
The process remains voluntary from begin to the end. It is possible to end the process if one of the parties wishes to end the negotiations during the mediation. A final report is drawn up for termination. The mediator acts as an impartial and independent observer at the meetings and will not pressure or judge the parties.
What does the mediation procedure look like
The person concerned can choose any mediator personally, or through the intervention of his lawyer, or apply to a mediation center where an independent mediator is assigned. The mediator must be specialized in consumer disputes.
The chosen or assigned mediator ensures that the request for mediation is transmitted to the opposing party and invites both parties to an initial meeting. This can be realized over the phone or even online. The contact details of the parties are provided by the office to the appointed mediator. The chosen mediator obtains the information from the person concerned or conducts his own research into it.
The parties are normally free to decide whether or not to participate in the first mediation meeting scheduled by the mediator. However, the legislator does have certain financial legal consequences associated with not wanting to participate in the first mediation meeting in the case of mandatory mediation.
As a rule, whoever has refused to participate in the first mediation meeting without valid reason will ultimately be sentenced to regular court costs regardless of whether that case is decided in his favor or not. However, the consumer is in any case excluded from paying up to the final legal costs.
Duration of mediation
The mediator will complete the application within 3 weeks after the date of the assignment. This term can be extended by a maximum of one week by the mediator in mandatory cases.
When will the mediation procedure be ended?
The mediation procedure will end if the parties;
◦ cannot be contacted,
◦ not participating in the proposed meetings,
◦ have reached an amicable settlement,
◦ have not reached an amicable settlement.
The mediator makes a written report of the termination by means of a closing report. If the parties reach a settlement, a mediation agreement will also be drawn up and signed. If the parties have not reached a settlement, the requesting party can still proceed to the regular dispute resolution on the basis of the final report.
Agreement between the parties
In the event that the parties reach an amicable settlement, the mediator will draw up a mediation agreement, which will be signed by all parties, including the mediator. This mediation deed has no enforceable title. If one of the parties does not fulfill this agreement, the other party can obtain a declaration of enforceability from the court based on the mediation agreement, prior to a debt collection procedure.
In case of no agreement
In the event of no agreement, the consumer can initiate a court case against the commercial party with the final report of the mediator. The closing report is a procedural condition for bringing a consumer dispute to the court.
The limitation period for consumer disputes relating to movable goods or services is 2 years after delivery. The information, documents and files of the mediator are confidential. This information cannot be used in a court case unless otherwise agreed.
Mediation costs
If the parties reach an agreement through mediation, the mediation fee will set on the agreed amount, and will as a rule be paid equally by the parties. However, in consumer disputes, the share of the consumer is paid from the budget of the Ministry of Justice, as long as that the fee may not exceed two hours.
If no agreement is reached, the mediation fee will be reimbursed from the budget of the Ministry of Justice. The statutory mediation rates are decisive in this.
Advantages of mediation
Mediation is an alternative way of dispute solving that is worth trying. Because the low threshold and ease of negotiating immediately ensures that disputes in a mediation procedure, whether voluntary or compulsory, are resolved at lower costs and in a short term. Moreover, unlike the regular legal system, mediation offers a peaceful solution. Ultimately, it is more satisfying for both parties in short term.
Feel free to contact us if you have any consumer-related problems or questions about mediation. There are more solutions than you think. We like to think along with you.
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