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History of the ADRC

In 1994, Japan legislated for its Product Liability Act, which went into force in July the following year. This act aims to protect consumers by defining the responsibilities of manufacturers and other suppliers for the injury to life, body, or property caused by defective product. (The act does not apply where the damages occur to such product only.)

Disputes over product liability and product defects were normally contested in court, but during discussions on the Draft Product Liability Act, the Japan Diet made the supplementary resolution that a system of dispute resolution alternative to the court system should be developed for the relief of consumers, since using the court system is an expensive and time-consuming.

In response, former Ministry of International Trade and Industry (now Ministry of Economy, Trade and Industry) issued a directive calling for the development of alternative dispute resolution systems in various product sectors in October 1994. The automotive industry, under the leadership of the Japan Automobile Manufacturers Association, founded the ADRC in April 1995 to launch alternative dispute resolution activities in the automotive product field.

As a result of a dozen years of its activities, the Conciliation and Examination services provided by ADRC were certified as 'Resolution Supporter' in 2007 by the Minister of Justice. Moreover, the ADRC was officially acknowledged by the Cabinet Office as a public interest incorporated foundation in 2011.

Thus the ADRC has been recognized as a reliable and independent alternative dispute resolution organization which is committed to the prevention of automotive accidents by defect and to the fair and speedy relief of consumers.

(Our sincere thanks to SJ and JR)

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