The document discusses challenges in online dispute resolution (ODR) and ways to overcome them. It outlines legal, technical, and cultural obstacles to ODR. These include differences in global legal systems, lack of online infrastructure in some countries, and absence of a universal culture. However, the document states that ODR challenges can be overcome through legislation providing opportunities for technology in dispute resolution. It provides examples of progress in the EU and other regions through laws and directives supporting ODR and electronic contracts. Recommendations include increasing education, support from governments and international organizations, and building confidence in ODR effectiveness.
2. Online Dispute Resolution
ODR essentially encompasses many forms of ADR and
court proceedings that incorporate the use of the
internet, websites ,e-mail communications, streaming
media and other information technology as part of the
dispute resolution process.
Parties may never meet face to face when participating
in ODR. Rather , they might communicate solely online.
3. Legal Obstacles online
In as much as there are obvious advantages, its
challenges is the difficult application of traditional
contract laws to the online environment.
Transactions need legal certainty both offline
and online.The reservations faced by online
contracts include whether it is enforceable, what
the terms are, whose law applies in the contract
and jurisdiction that governs the contract.
4. Challenges inherent in the use of ODR
1. Legal nature
-Differences in global legal systems
-Difficulty in defining a global term eg ‘consumer’
-Discrepancies in global ODR mechanisms
2. Technical nature
-Absence of sufficient online environment and
infrastructure in some Countries.
3. Cultural and Linguistic nature
-Lack of a universal culture and tradition.
5. Overcoming the challenges in ODR is
possible
ODR challenges can be overcome through legislations, which
provide opportunities which include the use of technology in
dispute resolution.
In 23rd April 2008, the European Parliament formally
approved, the Council’s common position in the Council’s
common position on the new Mediation Directive.
EC Directive of the European parliament of Council on
Certain Aspects of Mediation in Civil and Commercial
matters, known as Directive 2008/52/EC.
6. Overcoming the Digital divide
The public sector through the governmental institutions, and
International organisations have sought to overcome the
digital divide through various means
• Noticeably through working in the different regions to get over the
digital divide
7. Current Developments
The EU out-of-court dispute resolution legislative mechanisms,
there has been some significant progress.
Article 17 of the E-Commerce Directive stipulates for the use of
ODR, in an event of a dispute between an information society
service provider and the recipient of the service.
This provision is such that it does not hinder the use
of out-of-court schemes available under national laws
for dispute resolution.
8. A good example
With current developments of the EU out-of-court dispute resolution
legislative mechanisms, there has been some significant progress.
An example of online ADR practices in the EU, is
provided for by the Czech Arbitration Court.
The Czech Arbitration Court is currently able to
administer .eu ADR proceedings in practically
all official EU languages.
9. Middle East
The Arab League Model laws by UNCITRAL
Model Laws on Electronic Commerce and
Electronic is used as a guideline .
10. Africa
In an AU Summit in 2010, a convention on digital transactions was
drafted in 2008 and adopted in January 2012 .
11. America
Organisation of American States (OAS)
There is a proposal for the creation of a multi-state electronic system to
Provide alternative dispute resolution (ADR) mechanisms such as
negotiation, facilitated settlement and arbitration for some contracts.
12. The Caribbean
The Caribbean Community (CARICOM) in Its ICT 4 Development, on
the draft model laws on Consumer Protection(2008) focuses
on electronic commerce.
13. UN Mandate
United nations Commission on International Trade Law at the 43 rd
Session New York in June/July 2010 agreed that the use of
electronic commerce is important in business transactions and the
need to distinguish between consumers and commercial parties.
14. Recommendations to some overcome of
ODR challenges
- Creation of awareness in the importance of ODR to all practitioners,
especially to both lawyers and ADR experts.
- Education among the consumer and businesses of the role of ODR.
- Government mandate in form of directives, example as seen in the
EU.
- Support of ODR by International organisations
- Increase number of ODR practitioners
- Confidence in ODR effectiveness and efficiency in the dispute
resolution process.
15. E-commerce
E-commerce is important to business,
mainly because of its speed and the
convenience it offers.
The UNCITRAL Model Law on Electronic
Commerce was adopted by UNCITRAL on 12
June 1996. The primary essence of the
provision, is to remove existing legal obstacles
to the enforceability and recognition of e-
signatures.
16. Ijeoma Ononogbu
Solicitor England and Wales
International Dispute Resolution practitioner and ODR advocate
Blog- www.ijeomaononogbu.net
Online Dispute Resolution Conference Prague - ODR 2012
June 2012
Prague, Czech Republic.