Background
Online Dispute Resolution (ODR) usually refers to the use of Alternative Dispute Resolution (ADR) supported through the use of technologies like e-mail, chat or messaging software, audio conferencing or video-conferencing software for communication between the involved parties as means of resolving disputes outside of courts. ODR usually involves the use of offline ADR legal mechanisms -such as assisted negotiation, conciliation, mediation and arbitration- commonly used as an alternative resource to resolve dispute arising from transactions carried out on the Internet. ODR mechanisms are increasingly been used by e-commerce retail and merchants in order to provide consumers with a flexible, easy to use and as a convenient method to resolve disputes arising from transactions and interactions between Internet based merchants and online consumers.
In the online environment, consumers and merchants often interact at great physical distance and without any geographical restriction. There is widely recognition that resolving disputes arising from cross-border transactions may involve greater difficulty than resolving those conducted within the consumer’s national boundaries mainly due to the fact that consumers would have to face burdensome litigation and inconvenient travel costs in settling or resolving such disputes. Therefore, one of the major challenges to global e-commerce is to provide consumers with a reasonable and simple alternative way to resolve their disputes through the use of ODR.
ODR providers usually are private sector companies, public sector government agencies and academic institutions. Currently, the majority of ODR providers are private sector companies. B2C and C2C ODR mechanisms, particularly for cross-border transactions will not only provide consumers with efficient and cost-effective ways to resolve disputes arising from electronic transactions but also, they would help consumers feel more confident when making cross-border purchases on the Internet.
However, it is important that the legality principles of due process and access to justice be considered when using ODR mechanisms. Consumers’ rights should not be waived or be deprived of the protection afforded by the laws of their domicile or residence. Additionally, consumers should be allowed to make use of the existing remedies available under their respective local consumer protection laws. Furthermore, consumers may no be required to agree to binding procedures before disputes arises, thus depriving them of their access to their national courts.
NACPEC has especially created this section in order to illustrate our visitors with some of the most relevant existing organizations, sources, documents, publications and links in the area of ODR.
