Building a Global Redress System for Low-Value Cross-Border Disputes

Abstract

This article examines UNCITRAL's draft Rules for Online Dispute Resolution (ODR) and argues that in low-value e-commerce cross-border transactions, the most effective consumer protection policy cannot be based on national laws and domestic courts, but on effective and monitored ODR processes with swift out-of-court enforceable decisions. The draft Rules propose a tiered procedure that culminates in arbitration. Yet, this procedure neither ensures out-of-court enforcement, nor does it guarantee compliance with EU consumer mandatory law. Accordingly, this article argues that the draft Rules may be inconsistent with the European approach to consumer protection.

Motivations for selecting cross-border e-commerce as a foreign market entry mode

“…Academic literature on CBEC is still in its infancy and lacks in-depth coverage. Some studies have looked into specific elements such as designing CBEC logistics (Gessner & Snodgrass, 2015), taxation implementation (Azam, 2012), and CBEC-related dispute resolution (Cortés & de la Rosa, 2013;Rule, Rogers, & del Duca, 2010). Little research exists looking into the challenges and reasons for the rise of this new market access channel and why foreign brands select this new mode of entry and the challenges they face.…”

Key Features of E-Tailer Shops in Adaptation to Cross-Border E-Commerce in the EU

“…Other studies have described challenges in designing a global consumer ODR system [26] and showed that effective dispute settlement is one way to enhance consumer confidence in cross-border purchases made via the Internet [27]. However, Cortés and de la Rosa [28] argued that in low-value e-commerce cross-border transactions, the most effective consumer protection policy could not be based on national laws and domestic courts. Lin et al [29] showed that swift action following a dispute in cross-border e-commerce could help restore trust in the e-tailer.…”

Online Dispute Resolution and Models of Relational Law and Justice: A Table of Ethical Principles

“…Focusing on trust is a result of applying to the Internet the traditional ADR perspective in which interests and private gains and losses prevailed over other public automated/assisted negotiation between the parties without a human neutral, which may include blind-bidding techniques; (2) mediation/conciliation; and (3) arbitration leading to a decision which can be enforced". 6 After analyzing UNCITRAL's draft Rules for ODR, Cortés and Esteban de la Rosa contend [19]: "low-value e-commerce cross-border transactions, the most effective consumer protection policy cannot be based on national laws and domestic courts, but on effective and monitored ODR processes with swift out-of-court enforceable decisions".…”