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Development of ODR in China. XU Junke China University of Foreign Affairs Beijing, P.R.China xjk@cfau.edu.cn. I. Introduction. China's e-commerce in 2009 The annual amount of transaction was approximately RMB250 billion yuan there were as many as 15,600 e-commerce sites nationwide

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Development of ODR in China

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Development of ODR in China

XU Junke

China University of Foreign Affairs

Beijing, P.R.China

xjk@cfau.edu.cn


I. Introduction

  • China's e-commerce in 2009

  • The annual amount of transaction was approximately RMB250 billion yuan

  • there were as many as 15,600 e-commerce sites nationwide

  • B2Csite has seen visitors totaling 246 million

  • B2C reported a market gain of RMB22.02 billion yuan

  • More than 50% enterprises set up B2C marketplace on line

    statistics from http://www.china.com.cn/news/index.htm, 2010.1.27


The online retail market of B2C in China from 2008 to 2009

The graph is from http://www.qq.com/,2010.1.27


Various kinds of disputes

  • The common disputes of B2C e-commerce have the following items:

  • 1. The disputes of the quality on goods or service

  • 2. The disputes on the related fee payment

  • 3. The disputes about the returns and refund

  • 4. The disputes about no performance of a contract

  • 5. The disputes about termination of service without reasonable cause

  • 6. The disputes about consumer’s privacy being invaded.


The arrival of the era of Internet and booming of e-commerce calls for ODR mechanism.

ODR, integrate of network technology and ADR, is adaptable to the global e-commerce environment.


II. The current status of ODR in China

China ODR is divided into four categories

1. The Online Dispute Resolution Center of CIETAC (also known as the Domain Name Dispute Resolution Center of the CIETAC).

2. Online Dispute Resolution Center

3. Internal Complaint Mechanism

4. Online Petitions


1.The OnlineDispute Resolution Center of CIETAC

  • At present the center mainly settles CN/Chinese domain name disputes, common address disputes, SMS URL disputes and electronic business disputes.

  • In addition, the center settles the disputes over com, net and other generic top-level domain names accepted in the name of the Beijing Secretariat of the Asian Domain Name Dispute Resolution Center.


2.Online Dispute Resolution Center

  • In June 2004, China's E-commerce Laws Nets and Beijing Deofar Consulting Ltd. set up the “online dispute resolution center".

  • The center aims at offering information exchange platform and solving the disputes related to electronic commerce fairly, justly and promptly.

  • It adopts, among others, a complete set of rules and fee charging standards for online negotiation, mediation as well as ChinaODR authentication protocol.


3.Internal Complaint Mechanism

  • Internal Complaint Mechanism refers to the system established by the provider of network transaction platform and used to accept consumer complaints, communicate with consumers and settle the disputes involving consumption through consultation.

  • Taobao platform produced about 180 million transactions in 2009, and the resolved consumer rights disputes on 900,000 occasions


4.Online Petitions

  • Online Petitions are adopted by many non-profit organizations such as association and the consumer protection groups, such as:

    China's Electronic Chamber

    Electronic Commerce Association of Beijing

    E-commerce Industry Association ofShangai


III. Obstacles in operating the mechanism of ODR

  • 1. Information network technology

  • 2. The credit system

  • 3. Government support

  • 4. Laws and regulations


1. Information network technology

  • The network environment and coordination system need to be updated constantly; the technology relating to security of online communication and protection of personal privacy should be improved;

  • The "digital divide" phenomenon is becoming much more problematic along with the continuous development of communication technology in recent years.


2. Credit system

  • It is an important aspect of developing B2C e-commerce to establish online trust and strengthen the consumer confidence.

  • In China, the credit consciousness is very weak

  • Enterprises, customers and government rely excessively on the trust of public power, which can hinder people from using ODR.


3. Government support

  • A fundamental principle of ODR is to cross state power decided by the internet.

  • The government should not interfere excessively.

  • But without government regulation the e-commerce may go wrong.


4. Laws and regulations

  • Today, if ODR can further development, it needs to improve the legal environment.

  • The proper legal regulation can increase the efficiency and fairness of ODR.


IV. Future development of ODR in China

  • 1.Cooperation among enterprises, consumers, government, and nongovernmental organization should be strengthened.

  • 2. Strengthening international exchanges and cooperation


1.Cooperation among enterprises, consumers, government, and nongovernmental organization should be strengthened

  • 1) Establishing credit mechanism online and offline

  • 2) Leading role of the enterprises

  • 3) Self-discipline of industry

  • 4) Promotion of the government


2. Strengthen international exchanges and cooperation

  • 1) China should pay attention to the latest concepts from the international community

  • 2) China needs to draw on the experiences and technology of the developed countries.


V. Conclusion

  • China has taken steps in ODR practice. However, it is still only a fledgling, work needs to be done for improvement.

  • China also should take active measures to cultivate their online dispute resolution mechanism based on the e-commerce features and international pratice needs.


Thank you!


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