NCTDR issues ODR Framework document and revised ODR Standards

NCTDR has issued a paper, Framing the Parameters for Online Dispute Resolution introducing a framework for use in considering what constitutes ODR. With the recent burst in use of videoconferencing in dispute resolution during the global pandemic, growing interest in the application of artificial intelligence, and the development of sophisticated technologically supported platforms, robust discussions are underway about the state of play of ODR. We hope this ODR Framework will contribute to increased understanding and ethical design and use of technology in dispute handling.

The National Center for Technology and Dispute Resolution and the International Council for Online Dispute Resolution have jointly issued revised Online Dispute Resolution Standards.

ULC

Daniel Rainey (http://danielrainey.us/) has been asked to join the Uniform Law Commission (ULC – https://www.uniformlaws.org/home) as an observer to the study committee following the work of the U.N. Convention on International Settlement Agreements Resulting from Mediation.  According to the ULC’s self description, the ULC “(also known as the National Conference of Commissioners on Uniform State Laws), established in 1892, provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.”   The study committee is focused on the Singapore Convention and its impact.  As an observer, Rainey will bring an online dispute resolution (ODR) perspective to the committee’s deliberations, and will introduce a discussion of the Universal Disclosure Protocol for Mediation (UDPM – https://universaldisclosureprotocolmediation.com/ or https://udpm.org).

Legal ODR Market Projected to Top $210m by 2028

Emergen Research has just released a report attempting to size the Legal ODR market.

From their press release:

” The global legal Online Dispute Resolution (ODR) market size was USD 57.3 million in 2020, and is expected to reach USD 210.53 million 2028, and register a revenue CAGR of 17.5% during the forecast period, according to the latest report by Emergen Research. The arbitration segment accounted for largest share in the legal ODR market… The study offers comprehensive coverage of the qualitative and quantitative analysis of the Legal Online Dispute Resolution (ODR) market along with crucial statistical data about the Legal Online Dispute Resolution (ODR) market…

A primary factor driving market revenue growth is the rapid surge in number of individuals and parties, civilian, and commercial entities, and others, opting to resolve legal or judicial disputes virtually or across distances, and without any contact or physical appearance in a courtroom or at in the presence of judicial bodies… Increasing number of legal cases and disputes arising from e-Commerce sector are some key factors driving steady revenue growth of the global legal ODR market. The crisis has affected the demand and supply pattern, as well as the trends of the industry. It has also brought an economic slowdown that has affected the business of the key manufacturers of the industry. The report estimates the impact of this crisis on the current scenario and future prospects and provides a post-COVID market scenario.”

You can read more here.

Hangzhou Internet Court launches platform for cross-border digital trade

On November 25, 2021, Hangzhou Internet Court officially launched the country’s first cross-border trade judicial dispute resolution platform. The platform concentrates on accepting disputes such as cross-border digital trade and Internet intellectual property rights under the jurisdiction of the Hangzhou Internet Court. Through a set of diversified and three-dimensional dispute resolution channels and systems, it connects mediation and arbitration, etc., as recognized by APEC’s 21 member economies. “Asia-Pacific Economic Cooperation Cross-border E-commerce (B2B) Online Dispute Resolution Cooperation Framework” and “Model Procedure Rules” to achieve online “one-stop” resolution of various disputes such as mediation, arbitration, notarization, and litigation, and help strengthen cross-border The establishment of a judicial coordination mechanism serves to ensure the healthy development of the digital economy, contributes “Hangzhou Wisdom” and exports “Chinese experience” to global Internet governance. [Translation assistance by Google Translate and Michael Fang.] https://mp.weixin.qq.com/s/crvdccLsqZGwz4jAfOpi6w

China’s first judicial ODR platform is a further step forward after the launch of the first online arbitration platform. In February, 2021, the Guangzhou Arbitration Commission launched a cross-border ODR platform for MSMEs in the APEC member economies.  http://en.moj.gov.cn/2021-02/04/c_587662.htm

(h/t Michael Fang)

“Consumer Trust in the Digital Economy: The Case for ODR”

New UNCTAD Research Paper (No. 72):

“As e-commerce expansion surges, consumer trust remains fragile. This mismatch, greatly fuelled by the COVID-19 pandemic, reveals disparities between the rapid pace with which consumer activities are being migrated online and inadequate consumer protection.

Dispute resolution mechanism has been proposed by consumer experts as an essential tool that helps to foster trust. The notion of trust is unpacked to theorize why it matters in business transaction, and how a third-party can serve as an institutional mechanism to help transacting parties overcome distrust and settle dispute.

To examine how the theories work in practice, selected studies are reviewed to determine whether the presence of consumer dispute resolution promotes trust and whether its absence leads to business costs. This includes in-house business online dispute resolution such as customer support and third-party e-payment systems. The findings confirm that effective online dispute resolution processes can increase trust along with consumer loyalty and repurchasing intentions, as well as prevent customer churn and dissatisfaction.

The trust-enabling benefits of online dispute resolution are yet to be fully realized, especially for cross-border business-to-consumer e-commerce. Wider awareness and implementation are needed, but these global challenges require timely collaborations by the international community.”

More:
Consumer trust in the digital economy: The case for online dispute resolution | UNCTAD

(h/t Ying)

ODR in Large Bankruptcies

Maarten van Buuren on the Leiden Law Blog:

“Such an ODR tool might also be very useful in ‘closed’ situations such as large bankruptcies: through the use of blockchain technology, the receivers in the bankruptcy might come up with a relatively simple solution and use ODR to resolve straightforward disputes with customers through an online arbitration process. Many disputes could be dealt with this way in a relatively short period of time, which could also be useful in easing emotions. Enforcement could be guaranteed through an escrow account of the receivers or a third-party guarantee, such as the ‘Stichting Garantiefonds Reisgelden’ in the Netherlands which guarantees certain elements of purchased travel arrangements. As the outcome of disputes can be shown on the Blockchain, that as such could create ‘jurisprudence’ which might limit upcoming proceedings and could be helpful in future settlements.”

Read more:
Could online dispute resolution help in the Thomas Cook bankruptcy? – Leiden Law Blog

(h/t Mike Dennis)