Voluntary Collective Procedures: A Successful ADR Mechanism for the Collective Interests of Consumers

This article examines whether Chile’s Voluntary Collective Procedures (VCPs) operate as an effective ADR-based mechanism for protecting collective and diffuse consumer interests. It combines doctrinal analysis of the Consumer Protection Act (CPA) framework with a review of concluded VCPs and selected case studies. Introduced by Act No. 21.081, VCPs are administrative procedures conducted by the National Consumer Service (SERNAC). They are designed to achieve fast, complete, and transparent solutions in cases of alleged infringement of collective or diffuse consumer interests, through negotiated agreements with suppliers. These agreements do not imply recognition of liability by the supplier. Once approved by a court, they can have erga omnes effects, preventing subsequent collective actions based on the same facts and providing significant legal certainty. The analysis shows that VCPs have been an effective enforcement mechanism within the Chilean consumer protection system, particularly with regard to the prevention and correction of unfair standard terms, and the enforcement of consumer information duties.