- e-Commerce sales estimated to be 8 trillion in 2008 and will rise to 16 trillion soon.
- Existing legal framework for cross-border disputes has been comparable with Wild Wild West to date
- Studies show consumers gain benefits through cross-border commerce. Benefits usually mean cost savings!
- But many traders unwilling to trade across borders, even within EU.
- 51% of EU retailers sell via Internet, but only 21% conduct corss-border transactions.
- Could the system be free to consumers with a small charge to participating businesses?
- OAS proposal: Select and approve ODR providers - and get sellers to participate.
- OAS Process: Consumer initiates -> diagnosis -> negotiation -> facilitated settlement -> arbitration -> enforcement
- Anticipated that most disputes will be resolved in early phases.
- Challenge: build system to handle high volume, low value disputes at a reasonable cost.
- OAS procedural rules attempt to minimize cost by providing procedural rules to create multi-phase process.
- First phase(s) totally automated - lowest cost
- OAS: provide standards for certifying ODR providers
- Significant challenges remain - but the need for solutions is even greater. The time is now to build a global ODR system to provide much needed justice solutions.
- Enforcement could be one of the most difficult issues we face in international ODR context.
Prof. Del Duca's talking points:
- Ongoing blurring of distinction between B2B and B2C: the smaller claims need immediate, efficient, transparent solutions.
- Must distinguish between high volume / low cost and high cost/low volume disputes
- Optional instrument: set up a new system of law for ODR; let contracting parties opt into it
- How do individual governments develop their legal framework in the context of setting up a body of law that's optional for contracting parties to opt into?
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