Wednesday, November 3, 2010

Day 2 Opening Remarks

Cross-border OAS Proposal Review
  • Assumes language of the transaction will be language of process unless parties agree otherwise.
  • Need mechanism to ensure the cases actually close, so don't remain open indefinitely.
  • Need to identify role of public agencies - as opposed to private entities who seem to run most ODR at present.
  • Private entities generate more innovation. Gov't agencies have less incentive to continue evolution of the platforms
  • Expect roughtly 90% of cases can be resolved in problem diagnosis phase?
Plenary Sessions:

Consumers

Q: Do you think consumers would like to use the system as proposed?
A: They want fast, cheap and free (that's whey they're on Internet already).

Q: Should users expect to pay for ODR?
A: It should be free, o/wise it will represent an obstacle.

Q: What incentives should be used to build trust?
A: ODR neutrality. Consumer protection agency in own country sponsorship. Credibility, convenience.

Q: Should the system be optional, or opt in at time o fpurchase?
A: Do not opt in at time of purpose. Better to do it at time dispute comes up.

Q: Should all consumers be able to participate in the system in their first language?
A: Maybe ODR provider could provide translater in sophisticated negotiation.

Businesses

Q: Will business want to use it?
A: Would use it to increase sales. It would have to be cheaper to participate than to use other DR mechanisms like courts.

Q: How much should businesses have to pay to subscribe to the system?
A: Pro rate based on gross sales? But may be unfair for some businesses. Could pro rate based on number of claims involving the biz. Or coul dbe flat rate.

Q: What incentives should exist to encourage businesses to join?
A: Trust mark system could work.

Q: Should businesses be shielded from future legal liability?
A: Yes, if customer satisfied. But could be an access to justice issue.

Payments:

Q: Who are the principal payment intermediaries
A: Banks, credit card systems, mobile, etc.

Q: What is the best system? Closed with efficient private remedies, or open with arbitration.
A: Best is closed system with private remedies. But would be quite difficult to achieve, and may require hybrid system with private remedies and recourse to binding arbitration.

Role for States:

Q: What is the appropriate role of states in the development of an ODR process?
A: Develop framework and standards. Develop policy and rules. Participate in regional ODR system.

Q: What is the role of states in operation of the mechanism?
A: Create a central clearing house - although consumer agency involvement could also be required.

Q: Would states support the system as proposed?
A: They would like to increase cross-border commerce, but there could be sovereignty issues.

Q: Should public agencies pay for creation / operation of system?
A: States would probably have to pay for creation (software). Once it is going, the system should be self-financing.

Q: What role should government play in enforcement?
A: In closed system, not need gov't involvement. Gov't might play role through consumer protection agency to enforce/collect.

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