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Improving Online Dispute Resolution By Erin Chapman

Improving Online Dispute Resolution By Erin Chapman. What is ODR?. Alternative Dispute Resolution (arbitration, mediation, or bidding) that incorporates Internet Websites Email Videoconferencing Instant messaging As part of the dispute resolution process.

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Improving Online Dispute Resolution By Erin Chapman

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  1. Improving Online Dispute Resolution By Erin Chapman

  2. What is ODR? • Alternative Dispute Resolution (arbitration, mediation, or bidding) that incorporates • Internet • Websites • Email • Videoconferencing • Instant messaging • As part of the dispute resolution process. • Can resolve disputes generated online or offline.

  3. Benefits • Can resolve disputes generated offline and online • Inexpensive comparatively speaking • Save money on travel, attorney and court costs • Time saving • Parties have more control • Private • Releases pressure on the judicial system • AND

  4. Benefits continued • Increases access to justice • ODR can resolve disputes between parties from different countries or on different continents • Parties can settle disputes 24 hours a day, 7 days a week • Don’t need an attorney

  5. Limitations • It’s voluntary • Privacy of proceedings render no precedential value-unpredictability and unreliability • Enforcement • Lacks face to face dispute • Repeat Player Bias • Jurisdictional limitations-language and cultural barriers

  6. Limitations cont. • Not everyone has access

  7. Ways to deal with the enforcement limitation • Argentina-parties to a mediation conditionally vest with the mediator the additional title of arbitrator so if an agreement is reached, the mediator can render an arbitral award consistent with the agreement • Parties put into escrow each party’s consideration in the transaction so the escrow agent can distribute the assets in accordance with the ODR result • Parties to a settlement agreement provide in the agreement that if there is non performance of the agreement, the parties agree to have an arbitrator appointed to draft an arbitral award according to the terms of the settlement agreement.

  8. What to do? • Binding Arbitration? • Industry Wide procedures? • Create

  9. ABA Task Force on E-Commerce and Alternative Dispute Resolution Final Report and Recommendations September 2002

  10. Task Force • Created to propose protocols, guidelines and standards to be implemented by parties to online transactions and ODR providers • Instill trust and confidence in e-commerce and online markteplaces

  11. 2 Recommendations • Recommended Best Practices for ODR providers • Creation of and informational entity, the iADR Center

  12. Recommended Best Practices for Providers take a Disclosure-Based Approach Disclosures should be accurate, complete and consistent Disclosures should be easily locatable, downloadable and printable

  13. Providers should disclose • Contact information • Their terms, conditions and disclaimers • Thorough explanation of services and procedures • Support services

  14. Providers should disclose basic notions of due process • Adequate notice to parties • Opportunity to be heard • The right to be represented • In an arbitration, an objective decision based on the information of record

  15. Providers should disclose statistics including… • # cases resolved, received and pending • # cases resolved in favor of businesses/consumers • Average length of time proceedings are pending • Average cost to consumers

  16. Providers should disclose limitations to access • Membership requirement • Claim amount requirement • Geographic location or residency requirements

  17. Providers should disclose • Computer system requirements • Procedures • Available languages • Special services or procedures for persons with disabilities or low levels of literacy

  18. Providers should disclose anything raising a question of impartiality • ODR relationship to others including merchants, trade associations, referral fees, rebates, commissions, neutrals • How neutrals are chosen and their ethical guidelines

  19. Disclosing Confidentiality policies • What personal information the provider can release • Whether decisions are published • Whether and what proceedings are monitored • Quality control • Record retention and disposition, security in online processes,

  20. Providers should disclose how a disputant can enforcement agreement or award • Whether provider helps enforce the agreement • Whether provider cooperates with law enforcement agencies so fraudsters can be caught and prosecuted

  21. Providers should disclose the jurisdiction where complaints should be brought against the provider

  22. iADR Center • Private • Nongovernmental • Nonprofit • No regulatory authority • Free from outside interests • Funding from variety of sources

  23. iADR Center (the second Task Force recommendation) Goal is education Theory that once consumers are educated, they will purchase goods and services from sellers who consent to some ODR program. In effect, Internet fraud, nondelivery of goods decreases and consumer trust in e-commerce increases

  24. iADR Center should • Educate and familiarize government entities, Internet merchants, ODR providers, consumers and lawyers with ODR by… • Providing recommended best practices • Codes of conduct • Brochures

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